Boulder Corp.has the following assets:
Buildings and Equipment (net) $12,500,000
Trade Receivables 1,600,000
Inventory 2,300,000
Land 1,500,000
The total amount reported under Property, Plant, and Equipment would be
A)$14,000,000.
B)$16,300,000.
C)$20,500,000.
D)$17,900,000.

Question

Boulder Corp.has the following assets: 
Buildings and Equipment (net) $12,500,000
Trade Receivables 1,600,000
Inventory 2,300,000
Land 1,500,000
The total amount reported under Property, Plant, and Equipment would be
A)$14,000,000.
B)$16,300,000.
C)$20,500,000.
D)$17,900,000.

Quizplus · Accepted Answer

Property, Plant, and Equipment (PP&E) typically includes tangible assets like Buildings and Equipment, and Land. In this case, Buildings and Equipment (net) are $12,500,000 and Land is $1,500,000. Adding these together gives $14,000,000. Trade Receivables and Inventory are not considered part of PP&E.

Boulder Corp.has the Following Assets