Question

Bowyer Driving School’s 2014 balance sheet showed net fixed assets of $3.2 million, and the 2015 balance sheet showed net fixed assets of $3.8 million. The company’s 2015 income statement showed a depreciation expense of $235,000.

What was net capital spending for 2015? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Net capital spending

$

Answer 1

Ending net fixed assets=Beginning net fixed assets+net capital spending-Depreciation

3,800,000=3,200,000+net capital spending-235,000

net capital spending=3,800,000+235,000-3,200,000

=$835,000