Teddy's Pillows has beginning net fixed assets of $480 and ending net fixed assets of $530.Assets valued at $300 were sold during the year.Depreciation was $40.What is the amount of capital spending?
A)$10
B)$50
C)$90
D)$260
E)$390

Question

Quizplus · Accepted Answer

Capital Spending = Ending Net Fixed Assets - Beginning Net Fixed Assets + Depreciation - Assets Sold
= $530 - $480 + $40 - $300
= $90

Teddy's Pillows Has Beginning Net Fixed Assets of $480 and Ending