On January 1, 2017, plant assets, net are $200,000. On December 31, 2017, plant assets, net are $260,000. Depreciation expense for the year is $19,000. During the year, plant assets were acquired for $146,000 with cash. There is a Gain on sale of plant asset of $8000. What is the book value of the plant asset sold during the year?
A)$0
B)$59,000
C)$67,000
D)$86,000

Question

Quizplus · Accepted Answer

The increase in plant assets, net is $60,000 ($260,000 - $200,000). Adding back the depreciation expense of $19,000 gives a total increase of $79,000. Since $146,000 was spent on new assets, the difference ($146,000 - $79,000) is $67,000, which is the book value of the asset sold.

On January 1, 2017, Plant Assets, Net Are $200,000