Madison, Inc. has the following asset account balances: Buildings and equipment

Question

Madison, Inc. has the following asset account balances:

Buildings and equipment

$4,622,500

Accumulated depreciation

622,500

Patents

375,000

Goodwill

325,000

Accounts receivable

215,000

Land

2,507,500

What is the total amount that should reported on Madison, Inc.'s balance sheet under Property, plant, & equipment?

Select one:

A. $7,750,500

B. $7,830,000

C. $6,507,500

D. $7,207,500

Buildings and equipment

$4,622,500

Accumulated depreciation

622,500

Patents

375,000

Goodwill

325,000

Accounts receivable

215,000

Land

2,507,500

Explanation / Answer

Answer:

Total amount that should reported on Madison, Inc.'s balance sheet under Property, plant, & equipment=

(Building and Equipment - Accumulated Depreciation) + Land

$4,622,500 -$622,500 +2,507,500

$6507500

So, Answer is C. $6507500.

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