Balance Sheet School Books, Inc. has total assets of $18 million of which $6 million are current assets. Cash makes up 10 percent of the current assets and accounts receivable makes up another 40 percent of current assets. School Books' gross plant and equipment has an original cost of $13 million and other long-term assets have a cost value of $2 million. Using this information, what are the balance of inventory and the balance of depreciation on School Books' balance sheet?

$3 million, $2 million
$3 million, $3 million
$2.4 million, $2 million
$2.4 million, $3 million

Corporate Taxes