At the end of 2012, Zorro, Corp., had total assets of $11 million and total liabilities of

Question:

At the end of 2012, Zorro, Corp., had total assets of $11 million and total liabilities of $8 million. Included in the assets were property, plant, and equipment with a cost of $9 million and accumulated depreciation of $3 million. Also included in the assets were $246,000 of patents, $1,200,000 of and $345,000 of other long-term assets. During 2012, Zorro, Corp., earned total revenues of $23 million and had total expenses of $21 million.

Requirements
1. Show how Zorro, 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?

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