Mountainview Transit Company's beginning-of-year balance sheet showed net fixed assets of $4.2 million, and the end-of-year balance sheet showed net fixed assets of $5.1 million. The company's income statement showed a depreciation expense of $465,000. What was the net capital spending?

Mountainview Transit Company's beginning-of-year balance sheet showed net fixed assets of $4.2 million, and the end-of-year balance sheet showed net fixed assets of $5.1 million. The company's income statement showed a depreciation expense of $465,000. What was the net capital spending?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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Question

General accounting

Mountainview Transit Company's beginning-of-year
balance sheet showed net fixed assets of $4.2 million,
and the end-of-year balance sheet showed net fixed
assets of $5.1 million. The company's income
statement showed a depreciation expense of $465,000.
What was the net capital spending?

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