Platos Foods has ending net fixed assets of 84400 and beginn

Plato\'s Foods has ending net fixed assets of $84,400 and beginning net fixed assets of $79,900. During the year, the firm sold assets with a total book value of $13,600 and also recorded $14,800 in depreciation expense. How much did the company spend to buy new fixed assets?

a. -$23,900

b. $3,300

c. $32,900

d. $36,800

e. $37,400

Solution

Net amount spent to buy new fixed assets = Ending net fixed assets-Beginning net fixed assets+Assets sold-Depretiation expense

=$84400-$79900+$13600-$14800

=$3300

Answer:(b)