Problem:
ABC Ltd. was formed on 1/1/*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/*1 and $200 on 12/31/*2. The balance sheet immediately after formation is: ABC Ltd. Balance Sheet 1/1/ PPE$368.62StockholdersEquity $368.62 The asset historical cost$368.62, also represents the present value of future sales to be generated from the PPE discounted at a 15discount rate. Answer the following question: What amount will be reported for total equity on the 12/31/*1 balance sheet under present value accounting (assume no dividend payments)