Teddy's Pillows has beginning net fixed assets of $600 and ending net fixed assets of $730.Assets valued at $400 were sold during the year.Depreciation was $50.What is the amount of net capital spending?
A)$130
B)$150
C)$165
D)$180
E)$330

Question

Quizplus · Accepted Answer

Net capital spending is the difference between ending net fixed assets and beginning net fixed assets, adjusted for depreciation and asset sales.

Net capital spending = (Ending net fixed assets - Beginning net fixed assets) + Depreciation - Asset sales

Net capital spending = ($730 - $600) + $50 - $400 = $180

Teddy's Pillows Has Beginning Net Fixed Assets of $600 and Ending