In 2013,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 1,2013 and unsold cars and trucks were valued at $900,000 on December 31,2013.What is Kendall Ford's total investment spending in 2013?

Question

Quizplus · Accepted Answer

Total investment spending includes the purchase of new assets (car lift and copy machine) and the purchase of securities (Ford Motor company stock), as well as the change in the value of unsold inventory. Therefore, total investment spending is calculated as follows: 
$20,000 (car lift) + $2,000 (copy machine) + $600,000 (stock) + ($900,000 - $400,000) = $522,000. 
Therefore, the correct answer is C.

In 2013,Kendall Ford,an Automobile Dealership,spent $20,000 on a New Car