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In​ 2011, Kendall​ Ford, an automobile​ dealership, spent​$20,000 on a new car lift for its repair​ shop, $2,000 on a new copy machine for its sales​ division, and​ $600,000 on Ford Motor company stock. Unsold cars and trucks were valued at​ $400,000 on January​ 1, 2013 and unsold cars and trucks were valued at​$900,000 on December​ 31, 2013.

What is Kendall​ Ford's total investment spending in​ 2013?

Respuesta :

Answer:

$522,000

Explanation:

The computation of the total investment spending is shown below:

=  Ending unsold cars and trucks valued -  opening unsold cars and trucks  valued + repairing cost + cost of new copy machine

= $900,000 - $400,000 + $20,000 + $2,000

= $500,000 + $22,000

= $522,000

The stock should not be considered while computing the investment spending. Hence, ignored it