The Local Allied Moving Company Begins This Year with Capital

question 148

Multiple Choice

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 no gross investment during the year.
• C) Allied Moving Company made no net investment during the year.
• D) Allied Moving Company made net investment of $150,000 during the year.
• E) Allied Moving Company made gross investment of $250,000 during the year.

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