Question

Earnhardt Driving School’s 2018 balance sheet showed net fixed assets of $3 million, and the 2019 balance sheet showed net fixed assets of $3.7 million. The company’s 2019 income statement showed a depreciation expense of $200,000. What was the company's net capital spending for 2019? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answer 1

$800,000

Step-by-step explanation:

Calculation for Earnhardt Driving School’s net capital spending for 2019

Ending Fixed Assets $3,700,000

Less Beginning Fixed Assets ($3,000,000)

Balance $700,000

Add Depreciation $200,000

Net Capital Spending $800,000

Therefore Earnhardt Driving School’s net capital spending for 2019 will be $800,000