Teddy's Pillows Has Beginning Net Fixed Assets of $480 and Ending

question 20

Multiple Choice

Teddy's Pillows has beginning net fixed assets of $480 and ending net fixed assets of $530.Assets valued at $300 were sold during the year.Depreciation was $40.What is the amount of capital spending?

• A)$10
• B)$50
• C)$90
• D)$260
• E)$390

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Definitions:

Debt Securities

Financial instruments representing money borrowed that must be repaid, with terms that define the amount, interest rate, and maturity date.

Bonds

Fixed income investments in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock.

Subscription Agreements

Legal agreements for the purchase of shares in a company, typically used in private placements, detailing the terms and conditions of the investment.