Detailed Answer
Answer (B) is correct. These assets are known variously as property, plant, and equipment; fixed assets; or plant assets. 1. PPE are tangible. They have physical existence. 2. PPE may be either personal property (something movable, e.g., equipment) or real property (such as land or a building). 3. PPE are used in the ordinary operations of an entity and are not held primarily for investment, resale, or inclusion in another product. But they are often sold. 4. PPE are noncurrent. They are not expected to be used up within 1 year or the normal operating cycle of the business, whichever is longer. However, an asset need not be newly purchased to be properly described as property, plant, and equipment.