Problem:
ABC Ltd. was formed on 1/1/ when shareholders contributed cash to the company in exchange for no-par stock The company immediately used the cash to purchase a productive asset (PPE) that will generate end -of-year sales of $250 on 12/31/ and $200 on 12/31/X2. The balance sheet immediately after formation is: ABC Ltd. Balance Sheet 1 /1/X1 PPE $368.62 Stockholders Equity $368.62 The asset's historical cost $368.62, also represents the present value of future sales to be generated from the PPE discounted at a 15 % discount rate. Answer the following question: What amount will be reported for net PPE on the 12/ 31/X1 balance sheet under present value accounting?