In January 2017, Tim's Gyms, Inc.owned machines valued at $1 million.During the year, the market value of the machines fell by 30 percent.During 2017, Tim spent $200,000 on new machines.During 2017, Tim's net investment was
A)$500,000.
B)$100,000.
C)- $100,000.
D)$200,000.
E)$300,000.

Question

Quizplus · Accepted Answer

The market value of the original machines fell by 30% in 2017, reducing their value to $700,000. Adding the $200,000 spent on new machines, Tim's total investment in machines for 2017 was $900,000. Since the market value of the machines decreased by $300,000, Tim's net investment was -$100,000.