On January 1,2015,plant assets,net are $200,000 and on December 31,2015,plant assets,net are $320,000.Depreciation expense for the year is $100,000.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)$100,000
C)$120,000
D)$220,000

Question

Quizplus · Accepted Answer

The increase in net plant assets is $120,000 ($320,000 - $200,000). Adding the depreciation expense of $100,000 gives the cost of plant assets acquired as $220,000 ($120,000 + $100,000).

On January 1,2015,plant Assets,net Are $200,000 and on December 31,2015,plant