Answer:
Net capital spending = $2,985,000
Explanation:
There are two financial years in consideration
They are 2008 and 2009
Closing values of 2008 = Opening values of 2009
Now, closing value of net assets at 2008 = $4 million
Closing value of net assets for 2009 = $6.2 million
Net capital spending = Gross fixed assets at year end - Opening fixed assets
Gross fixed assets = Net Value + Depreciation
= $6.2 million + $785,000
= $6,985,000
Thus, Net capital spending in 2009 = $6,985,000 - $4,000,000
= $2,985,000
