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      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).

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