On January 1,2019,plant assets,net are $190,000.On December 31,2019,plant assets,net are $290,000.Depreciation expense for the year is $20,000.During the year,plant assets were acquired for $155,000 with cash.There is a Gain on sale of plant asset of $10,000.What are the cash proceeds from the sale of the plant asset?

Question

Quizplus · Accepted Answer

Beginning Balance,Plant Assets,net $190,000 + Acquisitions $155,000 - Depreciation Expense $20,000 - Book Value of Asset Sold = Ending Balance,Plant Assets,net $290,000
Book Value of Asset Sold = $35,000
Cash proceeds = Book Value of Asset Sold $35,000 + Gain on Sale $10,000 = $45,000

On January 1,2019,plant Assets,net Are $190,000