Based on the Following Information, What Is the Net Book

question 22

Multiple Choice

Based on the following information, what is the net book value of the asset on the December 31, 2021 balance sheet? $$\begin{array} { | l | r | } \hline \text { Cost } & \$ 750,000 \\\hline \text { Accumulated depreciation } & 400,000 \\\hline \text { Value in use (sum of discounted cash flows) } & 300,000 \\\hline \text { Fair value } & 200,000 \\\hline \text { Disposal costs } & 15,000 \\\hline\end{array}$$

• A)$185,000
• B)$200,000
• C)$300,000
• D)$350,000

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Definitions:

Common Stock

represents units of ownership in a corporation, giving shareholders voting rights and a share in the company’s profits through dividends.

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders.

Stock Option Plan

A compensation strategy used by companies to grant employees the right to purchase company shares at a predetermined price after a specified period.