Question

Orange Bowl Company reported plant assets, net of accumulated depreciation (i.e., book value) for the latest...

Orange Bowl Company reported plant assets, net of accumulated depreciation (i.e., book value) for the latest fiscal year of $5 million.

What is the $5 million considered? (ie cost, revenue, etc.)

Homework Answers

Answer #1

book value of the plant asset is not a cost , it is an asset which is reported in the balance sheet

accumulated depreciation is a contra asset account which is deducted from the original cost of plant and reported in balance sheet

PP&E

cost original                                     XXXX

less accumulated dep                    (XXX)

net plant assets or book value                        XXX

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