On January 1,2015,plant Assets,net Are $200,000

question 12

Multiple Choice

On January 1,2015,plant assets,net are $200,000.On December 31,2015,plant assets,net are $300,000.Depreciation expense for the year is $20,000.During the year,plant assets were acquired for $150,000 with cash.There is a Gain on Sale of Plant Asset of $10,000.What are the cash proceeds from the sale of the plant asset?

• A)$0
• B)$20,000
• C)$30,000
• D)$40,000

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Definitions:

Cost of Goods Sold

The expenses directly associated with the manufacturing of products a company sells, such as materials and labor.

Customer Returns

Goods or merchandise sent back to the retailer or manufacturer by the purchaser due to defects, dissatisfaction, or other reasons.

Accounting Equation

The core formula of double-entry accounting: Assets equal Liabilities plus Equity, which shows the link between a firm's assets and the stakes held in those assets.

Accounts Receivable-Digitec

The money owed to Digitec by its customers for goods or services that have been delivered or used but not yet paid for.