Reference no: EM132969648

An analysis of changes in selected balance sheet accounts of Johnson Corporation shows the following for the current year:

Plant and Equipment accounts:

Debit entries to asset accounts                   $ 160,000
Credit entries to asset accounts                   $ 118,000
Debit entries to accumulated depreciation accounts (resulting from sale of plant assets)                      $ 91,000
Credit entries to accumulated depreciation accounts (representing depreciation for the current year)     $ 107,000

Johnson's income statement for the current year includes a $14,000 loss on disposal of plant assets. All payments and proceeds relating to purchase or sale of plant assets were in cash.

Problem 1: The amount of cash paid by Johnson to acquire plant assets during the current year was:

A: $53,000
B: $267,000
C: $42,000
D: $160,000