Tri- Square Company Reported Plant Assets, Net of Accumulated Depreciation

question 60

Multiple Choice

Tri- Square Company reported plant assets, net of accumulated depreciation, on January 1, 2008, at $625,300 and $713,200 on December 31, 2008. The income statement showed a depreciation expense of $47,900 and a $5,100 loss on sale of plant assets. Tri- Square Company acquired $209,000 of plant assets during the year. The proceeds from the sale of plant assets were:

• A)$68,100.
• B)$839,400.
• C)$73,200.
• D)$121,100.

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Definitions:

Straight-Line Depreciation

A method of evenly distributing the cost of an asset over its useful life.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, indicating what a company expects to recover or sell the asset for.

Depreciation Expense

The calculated apportionment of the price of a tangible asset over the duration it is useful.

Components

The individual parts or elements that make up a larger product, system, or machine.