Use the information below for the Michigan Auto Corporation (MAC) to answer the following question.
Balance Sheet Accounts of Michigan Auto Corporation (MAC) Corporation
$\begin{array} { | l | c | }
\hline \text { Account } & \text { Balance 12/31/2017 } \
\hline \text { Accumulated depreciation } & \$ 7,650 \
\hline \text { Accounts payable } & \$ 6,875 \
\hline \text { Accounts receivable } & \$ 8,000 \
\hline \text { Cash } & \$ 3,750 \
\hline \text { Common stock } & \$ 15,625 \
\hline \text { Inventory } & \$ 11,250 \
\hline \text { Long-Term debt } & \$ 17,750 \
\hline \text { Plant, property, and equipment } & \$ 37,000 \
\hline \text { Retained earnings } & \$ 12,100 \
\hline
\end{array}$
-Refer to the Balance Sheet Accounts of MAC Corporation.The value of total assets for the year-end is ________.
A)$52,350
B)$60,000
C)$37,000
D)$29,350

Question

Use the information below for the Michigan Auto Corporation (MAC) to answer the following question.
Balance Sheet Accounts of Michigan Auto Corporation (MAC) Corporation
$\begin{array} { | l | c | } 
\hline \text { Account } & \text { Balance 12/31/2017 } \
\hline \text { Accumulated depreciation } & \$ 7,650 \
\hline \text { Accounts payable } & \$ 6,875 \
\hline \text { Accounts receivable } & \$ 8,000 \
\hline \text { Cash } & \$ 3,750 \
\hline \text { Common stock } & \$ 15,625 \
\hline \text { Inventory } & \$ 11,250 \
\hline \text { Long-Term debt } & \$ 17,750 \
\hline \text { Plant, property, and equipment } & \$ 37,000 \
\hline \text { Retained earnings } & \$ 12,100 \
\hline
\end{array}$
-Refer to the Balance Sheet Accounts of MAC Corporation.The value of total assets for the year-end is ________.
A)$52,350
B)$60,000
C)$37,000
D)$29,350

Quizplus · Accepted Answer

Total assets are calculated by adding up all the assets a company owns. This includes current assets (like cash, accounts receivable, and inventory) and fixed assets (like plant, property, and equipment before depreciation). For MAC Corporation, total assets are calculated as follows: Cash + Accounts Receivable + Inventory + Plant, Property, and Equipment (before depreciation) = $3,750 + $8,000 + $11,250 + $37,000 = $60,000. However, to find the net value of the assets, we must subtract accumulated depreciation from the total assets. Thus, the correct calculation should be: $60,000 (total assets without considering depreciation) - $7,650 (accumulated depreciation) = $52,350.

Use the Information Below for the Michigan Auto Corporation (MAC)