What is the amount of the net capital spending for 2011?
A) -$290
B) $795
C) $1,080
D) $1,660
E) $2,165

Question

What is the amount of the net capital spending for 2011?
A) -$290 
B) $795 
C) $1,080 
D) $1,660 
E) $2,165

Quizplus · Accepted Answer

We need to find the net capital spending, which is calculated as follows:
Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation
For 2011,
Beginning net fixed assets = $4,410
Ending net fixed assets = $5,490
Depreciation = $1,500
Therefore, net capital spending = $5,490 - $4,410 + $1,500 = $1,080
Hence, the correct answer is option C.

What Is the Amount of the Net Capital Spending for 2011