Answer to Question #106624 in Macroeconomics for rajan

Question

Annie runs a fitness center. On December 31, 2014, she bought an existing business with
exercise equipment and a building worth $300000. During 2015, business improved and
she bought some new equipment for $50000. At the end of 2015, her equipment and
buildings were worth $325000. Calculate Annie’s gross investment, depreciation, and net
investment during 2015.

Answer 1

depreciation_{for 2015}$=(300000+50000)-325000=$ $$25000$

gross investment _{for 2015} $=$ $$50000$

net investment$=50000-25000=$$ $25000$