Question

    ABC Ltd reports capital expenditure of Rs 12000, long-term asset sales of Rs 4000, and depreciation expense of Rs 1200. The long-term asset sales were fully depreciated. What is the fixed capital investment for the year?

    A 8000 Correct Answer Incorrect Answer
    B 6800 Correct Answer Incorrect Answer
    C 2800 Correct Answer Incorrect Answer
    D 9200 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Net Fixed capital expenditure during the year = Capital investments made during the year – proceeds from the sale of long-term asset            = 12000 – 4000 = 8000            (As long-term assets were fully depreciated, depreciation is not deducted again).

    Practice Next
    ×
    ×