Question

Nielsen Auto Parts had beginning net fixed assets of $219,030 and ending net fixed assets of $208,927. During the year, assets with a combined book value of $6,817 were sold. Depreciation for the year was $42,754. What is the amount of net capital spending

Answer 1

the amount of net capital spending for Nielsen Auto Parts is $25,834

Step-by-step explanation:

Net capital spending can be calculated using the following formula:

Net Capital Spending = Ending Net Fixed Assets - Beginning Net Fixed Assets + Depreciation - Sale of Assets

Given information:

Beginning Net Fixed Assets = $219,030

Ending Net Fixed Assets = $208,927

Sale of Assets = $6,817

Depreciation = $42,754

Substituting these values into the formula, we can calculate the net capital spending:

Net Capital Spending = $208,927 - $219,030 + $42,754 - $6,817

Net Capital Spending = -$10,103 + $42,754 - $6,817

Net Capital Spending = $25,834

Therefore, the amount of net capital spending for Nielsen Auto Parts is $25,834.