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 тАУ proceeds from the sale of long-term asset ┬а┬а┬а┬а┬а┬а┬а┬а┬а┬а = 12000 тАУ 4000 = 8000 ┬а┬а┬а┬а┬а┬а┬а┬а┬а┬а (As long-term assets were fully depreciated, depreciation is not deducted again).

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