MacIntosh Inc.has decided to record their property plant and equipment at fair value.Prior to making the adjustment, the capital asset account had a debit balance of $3,220,000 and the related accumulated depreciation was $1,440,000.An independent appraisal has determined a fair value of $6.3 million.Using the proportional method, at what amount would the assets be recorded on the balance sheet immediately after the adjustment to fair value?

Question

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The assets would be recorded at their fair value of $6.3 million immediately after the adjustment, as the proportional method or any other method of adjusting to fair value would result in the assets being reported at their fair value on the balance sheet.