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19 June, 03:20

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

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  1. 19 June, 03:44
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    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.
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