Question

In​ 2011, Kendall​ Ford, an automobile​ dealership, spent​ $20,000 on a new car lift for its repair​ shop, $2,000 on a new copy machine for its sales​ division, and​ $600,000 on Ford Motor company stock. Unsold cars and trucks were valued at​ $400,000 on January​ 1, 2018 and unsold cars and trucks were valued at​ $900,000 on December​ 31, 2018.
What is Kendall Ford's total investment spending in 2018?

Answer 1

Answer:

$522,000

Explanation:

The computation of the Kendall Ford's total investment spending in 2018 is shown below:

= Dealership spent + repairing cost + unsold cars and trucks were valued i.e closing cost - unsold cars and trucks were valued i.e opening cost

= $20,000 + $2,000 + $900,000 - $400,000

= $522,000

The $600,000 would be ignored and the rest cost are taken for the computation