At the end of 2012, Zepher, Corp., had total assets of $13 million and total liabilities of

Question:

At the end of 2012, Zepher, Corp., had total assets of $13 million and total liabilities of $11 million. Included in the assets were property, plant, and equipment with a cost of $10 million and accumulated depreciation of $2 million. Also included in the assets were $184,000 of patents, $1,645,000 of goodwill, and $273,000 of other long term assets. During 2012, Zepher, Corp., earned total revenues of $20 million and had total expenses of $18 million.

Requirements
1. Show how Zepher, Corp., reported long-term assets on its on December 31, 2012.
2. What was the book value of property, plant, and equipment on that date?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...