The Mac Company has four plants nationwide that cost $350 million. The current fair value of the plants is $300 million. The plants will be reported as assets at
A) $350 million.
B) $700 million.
C) $300 million.
D) $600 million.

Question

Quizplus · Accepted Answer

According to the historical cost principle, assets are recorded at their original cost, so the plants will be reported at $350 million.

The Mac Company Has Four Plants Nationwide That Cost $350