Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $300,000. During 2014, he bought new servers for $400,000. The market value of his older servers fell by $100,000. Michael's gross investment during 2014 was $2 Michael's depreciation during 2014 was $2. Michael's net investment during 2014 was $2. Michael's capital at the end of 2014 was $2.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.3P
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Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $300,000.
During 2014, he bought new servers for $400,000.
The market value of his older servers fell by $100,000.
Michael's gross investment during 2014 was $2
Michael's depreciation during 2014 was $2.
Michael's net investment during 2014 was $2.
Michael's capital at the end of 2014 was $2.
Transcribed Image Text:Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $300,000. During 2014, he bought new servers for $400,000. The market value of his older servers fell by $100,000. Michael's gross investment during 2014 was $2 Michael's depreciation during 2014 was $2. Michael's net investment during 2014 was $2. Michael's capital at the end of 2014 was $2.
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