Question: Task 3: Understand how amortization affects a companys financial statements 21st Century Farms Inc. is a high-tech farming operation that has successfully patented methods for
Task 3: Understand how amortization affects a companys financial statements
21st Century Farms Inc. is a high-tech farming operation that has successfully patented methods for quick and efficient farming 365 days a year in all kinds of weather.
As their accountant, you have been asked to prepare a partial balance sheet for their fixed assets for the year ended December 31, 2016.
Their books currently show the following information:
| Account | Amount as of December 31, 2016 |
|---|---|
| Buildings | $ 1,080,000 |
| Goodwill | 420,000 |
| Patents | 600,000 |
| Farm Equipment | 390,000 |
| Accumulated Amortization, Buildings | 670,000 |
| Accumulated Amortization, Farm Equipment | 275,000 |
| Accumulated Amortization, Patents | 120,000 |
To provide your answer, recreate the following table in a .doc or .docx format using word-processing software. PLEASE EXPLAIN THE ANSWER.
| 21st Century Farms Inc. Balance Sheet (partial) December 31, 2016 | ||
|---|---|---|
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