NICO Corporation had net fixed assets of $2,000,000 at the end of 2019 and $1,800,000 at the end of 2018.In addition,the firm had a depreciation expense of $200,000 during 2019 and $180,000 during 2018.Using this information,NICO's net fixed asset investment for 2019 was ________.

Question

Quizplus · Accepted Answer

Net fixed asset investment is calculated by subtracting the ending net fixed assets from beginning net fixed assets and then adding depreciation expense.

So, for NICO Corporation:

Net Fixed Asset Investment for 2019 = (Ending Net Fixed Assets for 2019 - Beginning Net Fixed Assets for 2019) + Depreciation Expense for 2019 
= ($2,000,000 - $1,800,000) + $200,000 
= $400,000

Therefore, the correct answer is D) $400,000.

NICO Corporation Had Net Fixed Assets of $2,000,000 at the End