Question

Logano Driving Schoolâs 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 companyâs 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.)

Answer 1

Answer:

$1,219,000

Explanation:

Calculation for the net capital spending for 2018

Using this formula

2018 Net capital spending=(2018 Net fixed assets-2017 Net fixed assets)+Depreciation expense

Let plug in the formula

2018 Net capital spending=($3,300,000-$2,400,000)+$319,000

2018 Net capital spending=$900,000+$319,000

2018 Net capital spending=$1,219,000

Therefore the 2018 Net capital spending will be $1,219,000