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PP&E (Property, Plant & Equipment) – Overview, Formula, Examples
Their office buildings and land are PP&E, but the houses or land they sell are inventory. PP&E Formula. Formula: Net PP&E = Gross PP&E + Capital Expenditures – Accumulated Depreciation. To illustrate: In May 2017, Factory Corp. owned PP&E machinery with a gross value of $5,000,000. Accumulated depreciation for the same machinery was $2,100,000.
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