On January 1, 2019, plant assets, net are $200,000. On December 31, 2019, plant assets, net are $250,000. Depreciation expense for the year is $20,000. During the year, plant assets were acquired for $155,000 with cash. There is a Gain on sale of plant asset of $8000. What is the book value of the plant asset sold during the year?

A. $105,000

B. $77,000

C. $85,000

D. $0

C. $85,000

Explanation:

Given;

Net book value of assets on 1 January, 2019 = $200,000

Net book value of assets on 31 December, 2019 = $250,000

Depreciation expense for the year = $20,000

Cost of asset acquired during the year = $155,000

Gain on asset disposed = $8000

Net book value of asset at year end = Net book value of assets at the beginning + cost of asset acquired during the year - depreciation charge for the year - net book value of asset disposed

250000 = 200000 + 155000 - 20000 - net book value of asset disposed

net book value of asset disposed = 200000 + 155000 - 20000 - 250000

= $85,000