Question

Plenti-Good Foods has ending net fixed assets of $98,700 and beginning net fixed assets of $84,900. During the year, the firm sold assets with a total book value of $13,200 and also recorded $9,800 in depreciation expense. How much did the company spend to buy new fixed assets?

Answer 1

Answer:

Company spend to buy new fixed assets = $36,800

Explanation:

Given:

Ending net fixed assets = $98,700

Beginning net fixed assets = $84,900

Total book value = $13,200

Depreciation expense = $9,800

Now,

Company spend to buy new fixed assets

= ending net fixed asset + sold asset book value + depreciation - begnning net fixed asset

or

Company spend to buy new fixed assets

= $98,700 + $13,200 + $9,800 - $84,900

or

Company send to buy new fixed assets = $36,800