The Blue Bonnet's 2010 Balance Sheet Showed Net Fixed Assets

question 52

Multiple Choice

The Blue Bonnet's 2010 balance sheet showed net fixed assets of $2.2 million,and the 2011 balance sheet showed net fixed assets of $2.6 million.The company's income statement showed a depreciation expense of $900,000.What was the amount of the net capital spending for 2011?

• A)-$500,000
• B)$400,000
• C)$1,300,000
• D)$1,700,000
• E)$1,800,000

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Definitions:

Periodic Tenancy

A lease agreement that continues for successive periods until terminated by either party.

Tenancy at Sufferance

A situation where a tenant continues to live in a property after their lease has ended without the consent of the landlord.

Notice to Quit

A written notification given by a landlord to a tenant to vacate the premises within a specified time frame, usually for violating terms of the lease or for holding over beyond the lease term.

Sublease

An agreement where the original tenant leases out a portion or all of their rented property to another tenant.