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 ________.
R20,000
R0
R380,000
R400,000
To calculate NICO's net fixed asset investment for 2022, we need to take into account the change in net fixed assets and the depreciation expense for the year.
Net fixed asset investment = (Ending net fixed assets for 2022 - Beginning net fixed assets for 2022) + Depreciation expense for 2022
Net fixed asset investment = (R2,000,000 - R1,800,000) + R200,000
Net fixed asset investment = R200,000 + R200,000
Net fixed asset investment = R400,000
Therefore, NICO's net fixed asset investment for 2022 was R400,000.