The TNT Company has five plants nationwide that cost $300 million.The current fair value of the plants is $500 million.The plants will be reported as assets at
A)$200 million.
B)$800 million.
C)$300 million.
D)$500 million.

Question

Quizplus · Accepted Answer

The plants will be reported at their historical cost of $300 million, as per the cost principle in accounting, which states that assets should be recorded at their original purchase price.

The TNT Company Has Five Plants Nationwide That Cost $300