CA5-5 (Presentation of Property Plant andEquipment) Carol Keene corporate comptr

CA5-5 (Presentation of Property Plant andEquipment) Carol Keene corporate comptroller for DumaineIndustries is trying to decide how to present Property plantand equipment in the balance sheet. She realizes that thestatement of cash flows will show that the company made asignificant investment in purchasing new equipment this year butoverall she knows the companys plant assets are rather old. Shefeels that she can disclose one figure titled Property plant andequipment net of depreciation and the result will be a lowfigure. However it will not disclose the age of the assets. If shechooses to show the cost less accumulated depreciation the age ofthe assets will be apparent. She proposes the following.