Plant and Equipment Your analysis of Moen Corporation's fixed asset accounts at year-end reveals the following information: Moen owns two tracts of land. The first, which cost $18,000, is being held as a future building site. It has a current market value of $20,000. The second, which cost $21,000, was purchased 10 years ago. The current office and factory buildings are on this site. The land has a current market value of $56,000. Moen owns two buildings. The office building and the factory building were both built 10 years ago at a cost of $70,000 and $120,000, respectively. At that time, each was expected to have a life of 30 years and a residual value of 10% of original cost. They are being depreciated on a straight-line basis. Moen owns factory machinery with a total cost of $50,000 and accumulated depreciation of $35,300. Included in factory machinery is one machine that cost $7,000 and has accumulated depreciation of $4,200. This machine is being held for resale and is not being used in operations. Moen owns office equipment that cost $14,500 and has a book value of $6,300. It owns office furniture that cost $18,500 and has a book value of $11,400. Required: Prepare the property, plant, and equipment section of Moen’s year-end balance sheet. MOEN CORPORATIONProperty, Plant, and Equipment Section of Balance SheetDecember 31, Current Year Cost AccumulatedDepreciation Book Value $- Select - $- Select - - Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Totals $fill in the blank 20 $fill in the blank 21 $fill in the blank 22

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Plant and Equipment

Your analysis of Moen Corporation's fixed asset accounts at year-end reveals the following information:

Moen owns two tracts of land. The first, which cost $18,000, is being held as a future building site. It has a current market value of $20,000. The second, which cost $21,000, was purchased 10 years ago. The current office and factory buildings are on this site. The land has a current market value of $56,000.
Moen owns two buildings. The office building and the factory building were both built 10 years ago at a cost of $70,000 and $120,000, respectively. At that time, each was expected to have a life of 30 years and a residual value of 10% of original cost. They are being depreciated on a straight-line basis.
Moen owns factory machinery with a total cost of $50,000 and accumulated depreciation of $35,300. Included in factory machinery is one machine that cost $7,000 and has accumulated depreciation of $4,200. This machine is being held for resale and is not being used in operations.
Moen owns office equipment that cost $14,500 and has a book value of $6,300. It owns office furniture that cost $18,500 and has a book value of $11,400.

Required:

Prepare the property, plant, and equipment section of Moen’s year-end balance sheet.

MOEN CORPORATIONProperty, Plant, and Equipment Section of Balance SheetDecember 31, Current Year