Big Sky Farms Partial Balance Sheet April 30, 2023

¹ The building was purchased on May 3, 2012, and is depreciated to the nearest whole month using the straight-line method. Depreciation is based on a 14-year life, after which it will be demolished and replaced with a new one.

² The equipment was purchased on November 3, 2020, and is depreciated to the nearest whole month using the double-declining-balance method. The total estimated useful life is 10 years with a residual value of $200,000.

Required

1. Calculate and record depreciation for the year just ended April 30, 2024, for both the building and equipment.

2. Prepare the property, plant, and equipment section of the balance sheet at April 30, 2024.

Transcribed Image Text:

Land Building ¹ Less: Accumulated depreciation Equipment² Less: Accumulated depreciation Total property, plant, and equipment $742,000 583,000 670,000 284,080 $730,000 159,000 385,920 $1,274,920