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:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Market Interest Rate

The prevailing rate at which borrowers and lenders agree to transact, influenced by the supply and demand for credit in financial markets.

Stated Rate

The annual interest rate declared on a financial instrument, such as a bond, without adjusting for compounding or market fluctuation.

Effective Rate

The actual rate of interest earned or paid on an investment, loan, or other financial product, taking into account the effects of compounding.