The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long -term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Total assets for this Corporation are

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Quizplus · Accepted Answer

Total assets are calculated by adding up all the assets a company owns. This includes Cash ($5,000), Machinery ($50,000), Building ($150,000), Savings ($10,000), Accounts receivable ($30,000), Inventory ($10,000), and Land ($50,000). Depreciation is not subtracted from individual assets in this calculation because it's an accounting measure of wear and tear, not a current asset. Therefore, total assets = $5,000 + $50,000 + $150,000 + $10,000 + $30,000 + $10,000 + $50,000 = $305,000. However, since the options provided do not match this calculation, it appears there was an error in my initial explanation. Let's correct that oversight:Correct calculation considering the options provided:- Cash: $5,000- Machinery (original cost): $50,000 (not subtracting depreciation here as we're looking for gross, not net assets)- Building (original cost): $150,000- Savings: $10,000- Accounts Receivable: $30,000- Inventory: $10,000- Land: $50,000Total assets = $5,000 + $50,000 + $150,000 + $10,000 + $30,000 + $10,000 + $50,000 = $305,000. Given the misunderstanding in the initial explanation and the mismatch with provided options, it's clear there was a mistake in the calculation process. The correct approach to determine the total assets should involve summing up all tangible and financial assets without subtracting liabilities or depreciation, as those are accounted for separately in the balance sheet equation. The correct answer should reflect the sum of all assets listed, but given the options and the error in the initial calculation, further clarification is needed to accurately select from the provided choices. My initial response incorrectly calculated the total assets without properly accounting for all listed assets and considering the options given.

The Tom Smith Corporation Has the Following Items: Cash, $5,000;