Question

At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts:

Accumulated depreciation—buildings		$60,400,000
Accumulated depreciation—equipment		53,500,000
Buildings		97,600,000
Equipment		150,000,000
Land		21,850,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value.

During 2022, the following selected transactions occurred:

Apr. 1		Purchased land for $4.40 million. Paid $1.100 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.
May 1		Sold equipment for $320,000 cash. The equipment cost $2.64 million when originally purchased on January 1, 2014.
June 1		Sold land for $5.74 million. Received $700,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.50 million when purchased on June 1, 2016. Interest on the note is due annually each June 1.
July 1		Purchased equipment for $2.70 million cash.
Dec. 31		Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received.
v (c) Z Your answer is partially correct. Try again. Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.) BLOSSOM COMPANY Statement of Financial Position (Partial) December 31, 2022 Property, Plant and Equipment Land 24,750,000 97,600,000 Buildings Accumulated Depreciation-Buildings 62,840,000 Less 149,060,000 Equipment Accumulated Depreciation-Equipment Less Total Property, Plant and Equipment

Answer 1

Answer -

BLOSSOM COMPANY

Statement of Financial Position (Partial)

December 31, 2022

Property, plant, and equipment	-	-
Land	-	$24750000
Buildings	$97600000	-
Less: Accumulated depreciation--Buildings	$62840000	$34760000
Equipment	$149060000	-
Less: Accumulated depreciation--Equipment	$65259000 [Refer working note - (1)]	$83801000
Total property, plant, and equipment	-	$143311000

# Working Note - (1) - Accumulated depreciation--Equipment -

Date	Amount ($)	Date	Amount ($)
May 1, 2022	2200000 [(2640000 /10 years) * 8 years + 88000)]	Jan. 1, 2022	53500000 [Opening balance]
Dec. 31, 2022	1000000	May 1, 2022	88000 [($2640000/10 years) * 4/12]
		Dec. 31, 2022	100000 [$1000000/10 years]
		Dec. 31, 2022	14771000 [($150000000-$2640000-$1000000) / 10 years] + [($2700000/10 years)*6/12]
		.
		Dec. 31, 2022	65259000 [Ending balance]