Gordon Driving School’s 2011 balance sheet showed net fixed assets of $1.42 mill

Question

Gordon Driving School’s 2011 balance sheet showed net fixed assets of $1.42 million, and the 2012 balance sheet showed net fixed assets of $1.69 million. The company’s 2012 income statement showed a depreciation expense of $145,000.

What was Gordon’s net capital spending for 2012? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

What was Gordon’s net capital spending for 2012? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

Explanation / Answer

Statement showing computations Particulars Amount Beginning Fixed Assets    1,420,000.00 Less depreciation     (145,000.00) Ending Fixed Assets before capital spending    1,275,000.00 Ending Fixed Assets after capital spending    1,690,000.00 Net Capital Spending = 1690,000 - 1275,000        415,000.00

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