Answer:
The correct answer is $105,000.
Explanation:
According to the scenario, the given data are as follows:
Cost of the plane = $85,000
Modification cost = $20,000
So, we can calculate the net cost of the plane by using following formula:
Net cost of the Plane = Cost of the plane + Modification cost
By putting the value, we get
Net cost of the plane = $85,000 + $20,000
= $105,000
