Question: Use the following information and deter mine the carrying amount

Use the following information and deter mine the carrying amount of the property, plant, and equipment of Manotick Inc. on December 31, 2017, the company's year-end. (An accounting equation spreadsheet, journal entries, or T-accounts may help you answer this question.)
i. On January 1, 2017, the cost of Manotick's property, plant, and equipment was $1,125,000 and the accumulated depreciation was $337,500.
ii. During fiscal 2017, Manotick sold property, plant, and equipment with a cost of $165,000 at a loss of $30,000. Manotick received $45,000 for the assets.
iii. During fiscal 2017, Manotick sold land, which is included in property, plant, and equipment, for $217,500 cash, which generated a gain for accounting purposes of $60,000.
iv. During fiscal 2017, property, plant, and equipment were purchased for $285,000 cash plus long-term debt of $337,500.
v. During fiscal 2017, Manotick wrote down property, plant, and equipment by $48,000.
vi. Manotick recorded a depreciation expense of $127,500 for fiscal 2017.



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  • CreatedFebruary 26, 2015
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