On January 1, 2017, plant assets, net are $180,000 and on December 31, 2017, plant assets, net are $290,000. Depreciation expense for the year is $120,000. No plant assets were sold or exchanged during the year. What is the cost of the plant assets acquired during the year?
A)$0
B)$60,000
C)$110,000
D)$230,000

Question

Quizplus · Accepted Answer

The increase in net plant assets is $290,000 - $180,000 = $110,000. Adding back the depreciation expense of $120,000 gives the cost of plant assets acquired: $110,000 + $120,000 = $230,000.

On January 1, 2017, Plant Assets, Net Are $180,000 and on December