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. When finished, save the document and submit it for evaluation along with all of the documents from the other tasks in this assessment.

PLEASE EXPLAIN ANSWER AFTER TOO

21st Century Farms Inc. Balance Sheet (partial) December 31, 2016