At the beginning of this year,Blauser Industries had net fixed assets of $21,506 and total assets of $32,687.At year's end,net fixed assets are $20,492 and total assets are $32,915.The annual depreciation expense is $1,520.What is net capital spending for this year?
A)−$850
B)$506
C)−$1,292
D)−$2,534
E)$1,748

Question

Quizplus · Accepted Answer

Net capital spending is calculated as the change in net fixed assets plus depreciation. The change in net fixed assets is $20,492 - $21,506 = -$1,014. Adding the depreciation expense of $1,520 gives a net capital spending of $506.

At the Beginning of This Year,Blauser Industries Had Net Fixed