19. On January 1, 2009, Terrys Towing Service owned 4 tow trucks valued at $300,000. During 2009,...
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19. On January 1, 2009, Terry’s Towing Service owned 4 tow trucks valued at $300,000. During 2009, Terry’s bought 2 new trucks for a total of $180,000. At the end of 2009, the market value of all of the firm’s trucks was $400,000. What was Terry’s gross investment? Calculate Terry’s depreciation and net investment. Use the following information to work Problems 20 and 21. The Bureau of Economic Analysis reported that the U.S. capital stock was $40.4 trillion at the end of 2007, $41.1 trillion at the end of 2008, and $41.4 trillion at the end of 2009. Depreciation in 2008 was $1.3 trillion, and gross investment during 2009 was $1.5 trillion (all in 2005 dollars).
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