The Allied Mining 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 summarises Allied Mining Company's investment?
A) Allied Moving Company made net investment of $150,000 during the year.
B) Allied Moving Company made no net investment during the year.
C) Allied Moving Company made no capital investment during the year.
D) Allied Moving Company made no gross investment during the year.
E) Allied Moving Company made gross investment of $250,000 during the year.

Question

Quizplus · Accepted Answer

Allied Mining Company's capital remained the same at $250,000, indicating no net investment during the year.

The Allied Mining Company Begins This Year with Capital Equal