On January 1,2015,plant assets,net are $200,000.On December 31,2015,plant assets,net are $300,000.Depreciation expense for the year is $20,000.During the year,plant assets were acquired for $150,000 with cash.There is a Gain on Sale of Plant Asset of $10,000.What is the book value of the plant asset sold during the year?

Question

Quizplus · Accepted Answer

The book value of plant assets at the beginning of the year is $200,000, and at the end of the year is $300,000. The depreciation expense for the year is $20,000, so the total amount of plant assets acquired during the year is:
$300,000 - $200,000 + $20,000 = $120,000

The plant assets were acquired for $150,000 with cash, so the plant assets sold during the year must have been acquired for:
$150,000 - $120,000 = $30,000

There is a gain on the sale of plant assets of $10,000, so the book value of the plant assets sold during the year is:
$30,000 - $10,000 = $20,000

Therefore, the answer is C) $30,000.

On January 1,2015,plant Assets,net Are $200,000