In 2018,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 1,2018 and unsold cars and trucks were valued at $900,000 on December 31,2018.What is Kendall Ford's total investment spending in 2018?

Question

Quizplus · Accepted Answer

Total investment spending is equal to the sum of capital expenditures and changes in inventory. 
Capital expenditures = $20,000 + $2,000 + $600,000 = $622,000. 
Changes in inventory = ($900,000 - $400,000) = $500,000. 
Total investment spending = $622,000 + $500,000 = $1,122,000. 
Therefore, the correct answer is (C) $522,000.

In 2018,Kendall Ford,an Automobile Dealership,spent $20,000 on a New Car