The local Allied Moving Company begins this year with capital equal to $250,000. During the year the firm depreciates $150,000 worth of its capital and ends the year with capital equal to $250,000. Which statement correctly summarizes Allied Moving Company's investment?
A)Allied Moving Company made no capital investment during the year.
B)Allied Moving Company made net investment of $150,000 during the year.
C)Allied Moving Company made no gross investment during the year.
D)Allied Moving Company made gross investment of $250,000 during the year.
E)Allied Moving Company made no net investment during the year.

Question

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The Answer of The local Allied Moving Company begins this year with capital equal to $250,000. During the year the firm depreciates $150,000 worth of its capital and ends the year with capital equal to $250,000. Which statement correctly summarizes Allied Moving Company's investment?
A)Allied Moving Company made no capital investment during the year.
B)Allied Moving Company made net investment of $150,000 during the year.
C)Allied Moving Company made no gross investment during the year.
D)Allied Moving Company made gross investment of $250,000 during the year.
E)Allied Moving Company made no net investment during the year.

The Local Allied Moving Company Begins This Year with Capital