The Duce Company Has Five Plants Nationwide That Cost a Total

question 45

Multiple Choice

The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at

• A) $100 million.
• B) $600 million.
• C) $400 million.
• D) $500 million.

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Definitions:

Portfolio Diversification

An investment strategy used to reduce risk by allocating investments among various financial instruments, industries, and other categories.

Number of Assets

The total count of individual assets, both tangible and intangible, owned or controlled by an entity.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed funds and exchange traded funds.

Stocks and Bonds

Equity and debt securities respectively, representing ownership in a corporation and a loan to be repaid by an entity, often with interest.