In 2011,Kendall Ford,an automobile dealership,spent $20,000 on a new car lift for its repair shop,$2,000 on a new copy machine for its sales division,and $600,000 on Ford Motor company stock.Unsold cars and trucks were valued at $400,000 on January 1,2011 and unsold cars and trucks were valued at $900,000 on December 31,2011.What is Kendall Ford's total investment spending in 2011?

Question

Quizplus · Accepted Answer

Kendall Ford's investment spending in 2011 includes the cost of the new car lift ($20,000), the new copy machine ($2,000), and the purchase of Ford Motor Company stock ($600,000). Therefore, the total investment spending is $20,000 + $2,000 + $600,000 = $622,000.
Additionally, the change in value of unsold cars and trucks needs to be considered. The value of unsold cars and trucks increased by $500,000 ($900,000 - $400,000). However, this is not considered investment spending, as it is an increase in the value of an existing asset rather than the purchase of a new asset. 
Thus, the total investment spending in 2011 is $622,000, and the best choice is C.

In 2011,Kendall Ford,an Automobile Dealership,spent $20,000 on a New Car