Question

Kerch co. had beginning net fixed assets of $216,566, ending net fixed assets of $211,729, and deperciation of $40,477. During the year, the company sold fixed assets with a book value of $8,014. How much did the company purchase in new fixed assets?

a) $32,224
b) $43,639
c) $41,476
d) $35,625
e) $34,293

Answer 1

The closest option is B,$43,639

Step-by-step explanation:

The formula for ending net fixed assets can be used to determine the value of new purchase as shown below:

ending net fixed assets= beginning net fixed assets-depreciation-cost of asset sold+new purchase

$211,729=$216,566-$40,477-$8,014+x

$211,729=$168075 +x

x=$211,729-$168075

x=$43654

The closest option is B