Given Below Are Several Accounts and Balances A)Prepare the Property Plant and Equipment Section of the Balance

question 132

Essay

Given below are several accounts and balances:
$$\begin{array} { l r r } & \underline{ \text { Year 2 } }& \underline{\text { Year 1 }}\\\text { Accumulated depreciation } & \$ 278,125 & \$ 258,750 \\\text { Gain on disposal of plant assets } &28,125 \\\text { Equipment (Equipment with book value of } \$ 36,875 \text { was sold) } & 893,750 & 993,750 \\\text { Land } &250,000 & 250,000\\\text { Cash received from sale of plant asset } &65,000 \\\end{array}$$
A)Prepare the property plant and equipment section of the balance sheet at December 31,
Year 2 in the space provided below.
$$\begin{array} { | c | } \hline \text { Balance Sheet } \\\hline\\\\\\\\\\\\\hline\end{array}$$
B)By how much will net income increase or decrease during Year 2 as a result of the above information?

• A)Prepare the property plant and equipment section of the balance sheet at December 31,
• Year 2 in the space provided below.
• \[\begin{array} { | c | }
• \hline \text { Balance Sheet } \\\hline\\\\\\\\\\\\
• \hline
• \end{array}\]
• B)By how much will net income increase or decrease during Year 2 as a result of the above information?

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Definitions:

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables, showing correlation patterns.

Cost

The value, measured in monetary terms, required to gain something or what is spent in order to buy, make, or achieve something.

Level Of Activity

A measure of the volume of production or operations, often influencing costs and profits in businesses.

Economic Plausibility

The degree to which economic theories or assumptions are realistic and make sense in real-world conditions.