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?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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