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ABC Inc. bought land and built its plant 15 years ago. Land is not depreciated. The depreciation on the building and plant is calculated
ABC Inc. bought land and built its plant 15 years ago. Land is not depreciated. The depreciation on the building and plant is calculated using the straight-line method, with a life of 30 years and a salvage value of $1,000,000. The depreciation for the equipment, all of which was purchased at the same time the plant was constructed, is calculated using declining-balance method with depreciation rate of 4%. Complete the Balance Sheet below and find: The value for the Total Assets = ? (4 point) The value for the Preferred Shares = ? (4 points) The value for the Acid-Test Ratio = ? (4 points) The value for the Return-on-Equity Ratio = ? (4 points) Note: This is a MULTIPLE-ANSWER problem, you have to select one correct answer for each of the above 4 questions.
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