Thunder Corporation Had a Beginning Balance in Net Plant Assets

question 48

Multiple Choice

Thunder Corporation had a beginning balance in net plant assets of $220,000. During the year, Thunder purchased $60,000 of new plant assets. Depreciation expense for the year was $30,000, and there was a net gain on the sale of plant assets was $3,000. The ending balance in net plant assets was $170,000. The book value of the plant assets sold was:

• A)$ 80,000.
• B)$140,000.
• C)$ 40,000.
• D)none of the above.

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Definitions:

Individual Profits

The net earnings obtained by a person after subtracting all relevant expenses from their revenue.

Cartel

An association of manufacturers or suppliers created to maintain high prices and restrict competition.

Strategic Interactions

Actions taken by entities in which each one's success depends not only on their own actions but also on the actions of others.

Oligopoly

A market structure characterized by a small number of firms controlling a large majority of market share, often leading to limited competition and higher prices for consumers.