The Film Shoppe is a video rental and retail chain. The Shoppe is fore

The Film Shoppe is a video rental and retail chain. The Shoppe is forecasting its financial statements for Year 2. Selected financial information for Years 1 and 2 is provided in the table.

In Year 2 The Shoppe is planning to invest $600 million in CAPEX and forecasted depreciation is $903 million. What is Net Property, Plant and Equipment in Year 2?

Selected Financial Information
The Film Shoppe Inc ($ millions)
Year 1 Year 2
PP&E $15,622
Depreciation 884 903
CAPEX 1,343 600

A) $15,116
B) $15,319
C) $15,419
D) $15,519
E) $16,222

ANSWER

B