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rodikova [14]
3 years ago
6

Logano Driving School’s 2017 balance sheet showed net fixed assets of $2.4 million, and the 2018 balance sheet showed net fixed

assets of $3.3 million. The company’s 2018 income statement showed a depreciation expense of $319,000. What was net capital spending for 2018? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.
Business
1 answer:
mamaluj [8]3 years ago
8 0

Answer:

The answer is: $1,219,000

Explanation:

The formula used to calculate Logano Driving School's net capital spending for the year is:

net fixed assets 2018 - net fixed assets 2017 + depreciation expense 2018

net capital spending = $3,300,000 - $2,400,000 + $319,000

net capital spending = $1,219,000

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