Assets classified as property, plant, and equipment are reported at:
A) each asset's estimated market value less depreciation on the balance sheet date.
B) each asset's estimated market value on the balance sheet date.
C) the estimated salvage value on the balance sheet date.
D) each asset's original cost less depreciation since acquisition.

Question

Quizplus · Accepted Answer

Property, plant, and equipment are reported on the balance sheet at their original cost less depreciation since acquisition. This is because they are considered long-term assets that are used over a period of time and therefore need to be depreciated to reflect their decreasing value over time. The estimated salvage value or market value may be used to determine depreciation, but they are not the basis for reporting these assets on the balance sheet.

Assets Classified as Property, Plant, and Equipment Are Reported At