Lower Manhattan Federal Attorneys Office (LMFAO) is putting together its financial plan for next year (2022). LMFAO is considering whether to purchase land to build a new office building. The land will cost $762 thousand, and it will cost $947 thousand to construct the building. End of 2021 gross property, plant, and equipment is expected to be $22,915 thousand, while accumulated depreciation is expected to be $8,312 thousand. Excluding the effects of the new office building, 2022 depreciation expense is expected to be $1,959 thousand. The office building will be a 30-year asset, and will thus be depreciated straight-line to zero over 27.5 years. Given the anticipated construction date of December 31, 2021, LMFAO will be able to record in 2022 a full year's worth of depreciation expense associated with the new building. (As you recall from accounting class, land is not depreciated). Given this info, what is your forecast for NET Property, Plant, and Equipment for the end of 2022 IN THOUSANDS to the nearest thousand?

Answer rating: 100% (QA)

To forecast the NET Property Plant and Equipment for the end of 2022 we need to calculate the deprec... View the full answer