Question

Kerch Co. had beginning net fixed assets of $216,510, ending net fixed assets of $211,680, and depreciation of $40,435. During the year, the company sold fixed assets with a book value of $7,966. How much did the company purchase in new fixed assets?

Answer 1

$43,571

Step-by-step explanation:

The computation of the purchase in a new fixed asset is shown below:

Beginning net fixed assets $216,510

Less: depreciation expenses -$40,435

Net fixed assets -$176,075

Less: book value of sold assets -$7,966

Net fixed assets $168,109

Closing net fixed assets $211,680

purchases of net assets during the year $43,571 ($211,680 - $168,109)

We simply applied the above format