Macroeconomics 11th Edition by Michael Parkin

Exercise 5

Annie runs a fitness center. On December 31, 2011, she bought an existing business with exercise equipment and a building worth $300,000. During 2012, business improved and she bought some new equipment for $50,000. At the end of 2012, her equipment and buildings were worth $325,000. Calculate Annie's gross investment, depreciation, and net investment during 2012.