Annie runs a fitness center. On December 31, 2011, she bought an existing business with exercise equipment and a building worth $600,000. During her first year of operation, business was poor. She sold some of her equipment to a competitor for $200,000.
a. What was Annie's gross investment during 2012?
b. What was Annie's depreciation during 2012?
c. What was Annie's net investment during 2012?
d. What was the value of Annie's capital at the end of 2012?