A company has the following assets:Buildings and Equipment, less accumulated depreciation of P2,000,000 9,600,000Copyrights 960,000Patents 4,000,000Timberlands, less accumulated depletion of P2,800,000 4,800,000The total amount reported under Property, Plant, and Equipment would be.
Question
A company has the following assets:Buildings and Equipment, less accumulated depreciation of P2,000,000 9,600,000Copyrights 960,000Patents 4,000,000Timberlands, less accumulated depletion of P2,800,000 4,800,000The total amount reported under Property, Plant, and Equipment would be.
Solution
To calculate the total amount reported under Property, Plant, and Equipment, you need to add up all the assets. However, you need to subtract any accumulated depreciation or depletion from the respective assets. Here's how you do it:
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Buildings and Equipment: The value is P9,600,000. There's an accumulated depreciation of P2,000,000. So, the net value is P9,600,000 - P2,000,000 = P7,600,000.
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Copyrights: The value is P960,000. There's no accumulated depreciation or depletion. So, the net value is P960,000.
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Patents: The value is P4,000,000. There's no accumulated depreciation or depletion. So, the net value is P4,000,000.
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Timberlands: The value is P4,800,000. There's an accumulated depletion of P2,800,000. So, the net value is P4,800,000 - P2,800,000 = P2,000,000.
Now, add up all the net values: P7,600,000 (Buildings and Equipment) + P960,000 (Copyrights) + P4,000,000 (Patents) + P2,000,000 (Timberlands) = P14,560,000.
So, the total amount reported under Property, Plant, and Equipment would be P14,560,000.
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