Answer :
Answer:
The answer amounts to $350,000
Explanation:
The net capital spending is the amount of money which the firm or the business spends on the acquired fixed assets during the accounting period or year.
The formula to compute the net capital spending (NCS) as:
Net Capital Spending (NCS) = End of the period fixed assets – fixed assets at the starting of the year + depreciation.
where
Fixed assets at the end of the year amounts to $900,000
Fixed assets at the beginning of the year amounts to 750,000
Depreciation amounts to $200,000
Putting the values above:
NCS = $900,000 - $750,000 + $200,000
NCS = $150,000 + $200,000
NCS = $350,000