Question

Gordon Driving School’s 2014 balance sheet showed net fixed assets of $4.8 million, and the 2015 balance sheet showed net fixed assets of $5.4 million. The company’s 2015 income statement showed a depreciation expense of $420,000. What was the company's net capital spending for 2015?

Answer 1

The correct answer is 1,020,000

Step-by-step explanation:

Net capital spending = Net fixed assets 2015 - Net fixed assets 2014 + Depreciation

Net capital spending =

5,400,000_4,800,000+420,000=

1,020,000

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