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13 October, 09:30

Logano Driving School's 2017 balance sheet showed net fixed assets of $2.4 million, and the 2018 balance sheet showed net fixed assets of $3.3 million. The company's 2018 income statement showed a depreciation expense of $319,000. What was net capital spending for 2018? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e. g., 1,234,567.

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  1. 13 October, 10:47
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    The answer is: $1,219,000

    Explanation:

    The formula used to calculate Logano Driving School's net capital spending for the year is:

    net fixed assets 2018 - net fixed assets 2017 + depreciation expense 2018

    net capital spending = $3,300,000 - $2,400,000 + $319,000

    net capital spending = $1,219,000
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