1. Hamilton Language School’s 2011 statement of financial position showed net fixed assets of $3.4 million and the 2012 statement of financial position showed net fixed assets of $4.2 million. The company’s 2012 statement of comprehensive income showed a depreciation expense of $385,000. What was net capital spending in 2012?    2. Given the following information for Diane’s Pizza Co., calculate the depreciation expense: sale = $41,000, costs = $19,500, addition to retained earnings = $5,100, dividends paid = $1,500, interest expense = $4,500, tax rate = 35%.

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1. Hamilton Language School’s 2011 statement of financial position showed net fixed assets of $3.4 million

and the 2012 statement of financial position showed net fixed assets of $4.2 million. The company’s 2012

statement of comprehensive income showed a depreciation expense of $385,000. What was net capital

spending in 2012? 

 

2. Given the following information for Diane’s Pizza Co., calculate the depreciation expense: sale = $41,000,

costs = $19,500, addition to retained earnings = $5,100, dividends paid = $1,500, interest expense =

$4,500, tax rate = 35%.

3.  

 
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