Answer:
$392,600
Explanation:
Given that,
On December 31, 2013, balance sheet showed net fixed assets = $1,238,000
December 31, 2014, balance sheet showed net fixed assets = $1,416,000
Depreciation expense 2014 = $214,600
Firm's net capital spending for 2014:
= Net fixed assets on December 31, 2014 - Net fixed assets on December 31, 2013 + 2014 Depreciation expense
= $1,416,000 - $1,238,000 + $214,600
= $392,600
Therefore, the firm's net capital spending for 2014 is $392,600.
