NICO Corporation had net fixed assets of R2,000,000 at the end of 2022 and R1,800,000 at the end of 2021. In addition, the firm had a depreciation expense of R200,000 during 2022 and R180,000 during 2021. Using this information, NICO's net fixed asset investment for 2022 was ________.

Question

R20,000
R0
R380,000
R400,000

Answer 1

Net fixed asset investment for 2022 can be calculated as follows:

Net Fixed Assets 2022 = R2,000,000
Depreciation Expense 2022 = R200,000

Net Fixed Assets 2021 = R1,800,000
Depreciation Expense 2021 = R180,000

Net Fixed Asset Investment 2022 = (Net Fixed Assets 2022 + Depreciation Expense 2022) - (Net Fixed Assets 2021 + Depreciation Expense 2021)
Net Fixed Asset Investment 2022 = (R2,000,000 + R200,000) - (R1,800,000 + R180,000)
Net Fixed Asset Investment 2022 = R2,200,000 - R1,980,000
Net Fixed Asset Investment 2022 = R220,000 - R180,000
Net Fixed Asset Investment 2022 = R40,000

Therefore, NICO's net fixed asset investment for 2022 was R40,000.