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The following account information relates to The Bedford Springs\'s 2016 trial b

ID: 2570631 • Letter: T

Question

The following account information relates to The Bedford Springs's 2016 trial balance. Cash 22,000 Accounts Receivable 18,000 Property, Plant, & Equipment 3,400,000 Accum-Depr Prop Plant & Equip ? Other Assets 5,000 Accounts Payable 16,500 A/P Loans 2,000,000 Capital 478,500 What is the amount that should be recorded in accumulated depreciation property, plant, and equipment? The following account information relates to The Bedford Springs's 2016 trial balance. Cash 22,000 Accounts Receivable 18,000 Property, Plant, & Equipment 3,400,000 Accum-Depr Prop Plant & Equip ? Other Assets 5,000 Accounts Payable 16,500 A/P Loans 2,000,000 Capital 478,500 What is the amount that should be recorded in accumulated depreciation property, plant, and equipment?

Explanation / Answer

Property, Plant and Equipment (After Depreciation) = Capital + A/P Loans + Accounts Payable - Cash - Accounts

Receivable - Other Assets

= $478500 + $2000000 + $16500 - $22000 - $18000 - $5000

= $2450000

Accumulated Depreciation = Property, Plant and Equipment Before Depreciation - Property, Plant and Equipment

After Depreciation

= $3400000 - $2450000

= $950000