Balance sheet disclosure of long-term assets (Learning Objective 9)

10–15 min.

At the end of 2014, Jamison, Corp., had total assets of $14 million and total liabilities of $9 million. Included in the assets were property, plant, and equipment with a cost of $12 million and accumulated depreciation of $3 million. Also included in the assets were $210,000 of patents, $1,400,000 of goodwill, and $318,000 of other long-term assets. During 2014, Jamison, Corp., earned total revenues of $9 million and had total expenses of $7 million.

Requirements 1. Show how Jamison, Corp., reported long-term assets on its balance sheet on December 31, 2014.
2. What was the book value of property, plant, and equipment on that date?AppendixLO1