A firm has fixed assets at the end of 2022 of $40,000. At the beginning of 2022, it's fixed assets were $35,000. During the year, the firm recorded $2000 in depreciation. How much was recorded for the firm's CAPEX? Hint #1: CAPEX = end FA - beg FA + dep Hint #2: Be careful with beginning and ending

A firm has fixed assets at the end of 2022 of $40,000. At the beginning of 2022, it's fixed assets were $35,000. During the year, the firm recorded $2000 in depreciation. How much was recorded for the firm's CAPEX? Hint #1: CAPEX = end FA - beg FA + dep Hint #2: Be careful with beginning and ending

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Hint #1: CAPEX = end FA - beg FA + dep

Hint #2: Be careful with beginning and ending

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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