Question

Awnings Incorporated has beginning net fixed assets of $234,100 and ending net fixed assets of $243,600. Assets valued at $42,500 were sold during the year. Depreciation was $62,500. What is the amount of net capital spending?a. $42,500b. $9,500c. $72,000d. $53,000e. $29,500

Answer 1

Answer:

Option (c) is correct.

Explanation:

Given that,

Beginning net fixed assets = $234,100

Ending net fixed assets = $243,600

Assets were sold during the year = $42,500

Depreciation = $62,500

Net capital spending:

= Ending net fixed assets - Beginning net fixed assets + Depreciation

= $243,600 - $234,100 + $62,500

= $72,000

Therefore, the amount of net capital spending is $72,000.