These are selected account balances on december 31, 2014.
land $100,000
land (held for future use) 150,000
buildings 800,000
inventory 200,000
equipment 450,000
furniture 100,000
accumulated depreciation 300,000
what is the total amount of property, plant, and equipment that will appear on the balance sheet?

$1,150,000

Explanation:

Two categories of operatng assets are presented on the balance sheet: Property, plant and equipment; intangible assets.

They are presented at their acquisition cost (historical cost).

The balance sheet uses one line item for property, plant and equipment and presented the details in the notes.

Initially are recorded at acquisition cost or original cost, that include all cost normally necessary to acquire an asset and prepare it for its intended use.

A depreciation is an allocation of the original cost of an asset to the periods benefited by its use.

In this case, he total amount of property, plant, and equipment that will appear on the balance sheet is $1,150,000 because:

Land $100,000 + Buildings 800,000 + Equipment 450,000 + Furniture 100,000 - Accumulated Depreciation 300,000 = $1,150,000.

Operations research is an important method that is used by modern management for solving complex problems under uncertain conditions. Operation research is used in business where the managers need to take risk since there are very few things are certain.

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