Property, Plant, and Equipment, Net
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Han Corporation Trial Balance Explanation**
Selected accounts from Han Corporation's trial balance are as follows for December 31:
**Selected Accounts**
| Account Name | Debit | Credit |
|----------------------------------------------|--------------|---------|
| Cash | $150,000 | |
| Short-Term Marketable Securities | 145,000 | |
| Accounts Receivable | 26,000 | |
| Inventories | 90,000 | |
| Other Current Assets | 20,000 | |
| Land | 330,000 | |
| Buildings | 300,000 | |
| Accumulated Depreciation-Buildings | | 40,000 |
| Equipment | 141,000 | |
| Accumulated Depreciation-Equipment | | 15,000 |
| Goodwill | 40,000 | |
| Other Intangible Assets | 20,000 | |
**Summary**
- The debit total includes current assets such as cash, securities, receivables, inventories, and other assets, along with non-current assets like land, buildings, equipment, goodwill, and other intangible assets.
- The credit total accounts for accumulated depreciation on buildings and equipment.
**Property, Plant, and Equipment, Net Section**
**Input Fields:**
- Users are required to fill out fields showing individual asset values and aggregate totals:
- Property, Plant, and Equipment (Gross)
- Total Property, Plant, and Equipment, Net
This section is designed to help in preparing a detailed schedule to showcase the organization's property, plant, and equipment figures once depreciation is considered, contributing to the understanding of net asset values.
Expert Solution

Step 1
The gross property, plant, and equipment represent the total of long-term assets. Whereas, net property, plant, and equipment represent the deduction of accumulated depreciation from the value of the long-term assets.
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