Lester's Fried Chick'n purchased its building 11 years ago at a cost of $189,000.The building is currently valued at $209,000.The firm has other fixed assets that cost $56,000 and are currently valued at $32,000.To date, the firm has recorded a total of $49,000 in depreciation on the various assets it currently owns.Current liabilities are $36,600 and net working capital is $18,400.What is the total book value of the firm's assets?

Question

Quizplus · Accepted Answer

The total book value of the firm's assets is $251,000. This is calculated by adding the current value of the building ($209,000) to the current value of the other fixed assets ($32,000) and subtracting the total depreciation recorded to date ($49,000).

Lester's Fried Chick'n Purchased Its Building 11 Years Ago at a Cost