Question

Plato's Foods has ending net fixed assets of $84,400 and beginning net fixed assets of $79,900. During the year, the firm sold assets with a total book value of $13,600 and also recorded $14,800 in depreciation expense. How much did the company spend to buy new fixed assets

Answer 1

$32,900

Step-by-step explanation:

The computation of new fixed assets is shown below:-

New fixed assets = Net fixed assets + Total book value + Depreciation expenses - Fixed assets

where,

net fixed assets is $84,400

Total book value is $13,600

Depreciation expense is $14,800

And, the fixed assets is $79,900

Now placing these values to the formula

So, the new fixed asset is

= $84,400 + $13,600 + $14,800 - $79,900

= $32,900