Answer:
$14,832
Explanation:
Depreciation charge = 2 x SLDP x BVSLDP
where,
SLDP = 100 ÷ useful life = 20 %
and
BVSLDP = Cost or Net Book Value
therefore,
1st year
Depreciation charge = 2 x 20 % x $61,800 = $24,720
2nd year
Depreciation charge = 2 x 20 % x ($61,800 - $24,720) = $14,832
conclusion
the amount of depreciation for the second full year is $14,832
Decide if each is an annuity or not an annuity. a. $1000 cash received per year for 10 years b. $200 paid in month 1, $150 paid in month 2 and $400 paid in month 3 a) annuity b) not an annuity a) annuity b) annuity a) not an annuity b) not an annuity a) not an annuity b) annuity
Answer:
a. It Is an annuity
b. It is not an annuity.
Explanation:
given
cash received = $1000 per year
time = 10 year
so here we know that annuity provide the steady amount of cash on periodic interval for stated period time.
so in part a. it provide cash of 1,000 for the each 10 years each
so it is an annuity
b.
in month 1 paid = $200
in month 2 paid = $150
in month 3 paid = $400
as we can see here that amount of each cash flow period is not equal
so that It is not an annuity.
Statement I is correct, while Statement II is incorrect. Statement I states that annuity due payments are made at the beginning of each year, and this is correct. An annuity due is a type of cash flow where payments are made at the start of each period, such as at the beginning of each year.
This is different from a regular annuity, where payments are made at the end of each period. Statement II states that perpetuity investments offer infinite payments, and this is incorrect. A perpetuity is an investment that provides a constant stream of cash flows that continues indefinitely. However, while perpetuity investments offer regular and constant payments, they are not infinite.
The payments continue indefinitely but are not infinite in value. In conclusion, Statement I is correct because annuity due payments are made at the beginning of each year. However, Statement II is incorrect because perpetuity investments offer indefinite payments, not infinite payments.
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On August 5, 2021, Wildhorse Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $320 each. The cost of shipping the dining sets amounted to $1710 and was paid for by Wildhorse Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $820 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $570, and installation and setup costs of $750. The total profit on units sold for the consignor is
Answer:
$6,150
Explanation:
Calculation to determine what The total profit on units sold for the consignor is
Total profit=[ (20)×($820 - $320 )] - (20 × $820)(.05) - $1,710 - $570 - $750
Total profit=(20*$500)-($16,400*.05)-$1,710-$570-750
Total profit=$10,000-$820-$1,710-$570-750
Total profit=$6,150
Therefore The total profit on units sold for the consignor is $6,150
An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Answer:
-$79000
Explanation:
The computation of the annual financial advantage (disadvantage) is shown below;
Particulars Per unit Total 13000 units
Make Buy Make Buy
Direct materials 2.90 37700
Direct labor 7.50 97500
Variable manufacturing
overhead 8.00 104000
Supervisor's salary 3.40 44200
Contribution margin 25000
Purchase cost 29.80 387400
Total 308400 387400
Now the finacial disadvantage is
= 308400 - 387400
= -$79000
Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.)
a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss.
b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain.
c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000.
Answer:
a. Increase $8,000
b. Increase $5,000
c. Decrease $16,000
Explanation:
We focus on Investment Activities only
Sale of a Truck
Sale of a Machine
Purchase of Stock Investment
The following information for Cooper Enterprises is given below: December 31, 2021Assets and obligations Plan assets (at fair value) $600,000 Accumulated benefit obligation 1,110,000 Projected benefit obligation 1,200,000Other Items Pension asset / liability, January 1, 2021 30,000 Contributions 360,000 Accumulated other comprehensive loss 503,700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years. What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2021
Answer:
$600,000
Explanation:
Calculation to determine the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2021
Using this formula
Pension liability = Projected benefit obligation - plant asset at fair value
Let plug in the formula
Pension liability = $1,200,000 - $600,000
Pension liability = $600,000
Therefore the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2021 is $600,000
A company’s accountant is trying to prepare an adjusted trial balance from the list of accounts below. Cash $ 12,000 Retained Earnings 31,000 Prepaid Rent 2,000 Salaries Expense 15,000 Equipment 68,000 Service Revenue 40,000 Miscellaneous Expense 10,000 Supplies 4,000 Dividends 3,000 Accounts Payable 5,000 Common Stock 38,000 What is the total amount of credits?
Answer:
114000
Explanation:
The total amount of credit is $114,000.
The calculation of the total amount of the credit account is= Retained earnings + service revenue + account payable + common stock
= $31,000 + $40,000 + $5,000 + $38,000
= $114,000
The above accounts shows the credit balance.
Therefore we can conclude that the total amount of credit is $114,000.
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A potential negative outcome of budgeting is that multiple choice 2 it can be a motivating force when guidelines are followed. employees may understate sales budgets and overstate expenses. employees may not fully spend their budgeted amounts. employees may overstate sales budgets and understate expenses.
Answer:
employees may understate sales budgets and overstate expenses.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be integrated or infused into the budget.
A potential negative outcome of budgeting is that employees may understate sales budgets and overstate expenses. Thus, this would go a long way to alter or affect the budget plan.
A potential negative outcome of budgeting is that employees may understate sales budgets and overstate expenses. The correct option is b.
Budgeting has behavioural effects on employee motivation. Budgets that are imposed instead of negotiated are demotivating. Setting unrealistic goals contributes to demotivation. Battles over budget allocation contribute to departmental rivalry. Spending up to the budget: This can lead to a "use it or lose it" mentality, in which you spend up to the spending plan in order to save it for next year. Budget slack occurs when goals are set too low.
Budgeting has two negative consequences: it takes time and Inaccuracy.
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Geraldine, an attorney, rendered legal services in organizing an oil and gas partnership in the current year. Instead of submitting a bill for her services. Geraldine accepted a 10% capital interest in the partnership. Geraldine's normal charge for the services performed would have been $10,000. The fair market value of the 10% interest received by Geraldine was $12,000. How much should Geraldine report on her current year's income tax return
Answer:
Geraldine
The amount that Geraldine should report on her current year's income tax return as income from the above exchange is:
= $10,000.
Explanation:
a) Data and Calculations:
Geraldine's normal charge for the services performed = $10,000
The fair market value of the 10% interest received by Geraldine = $12,000
Geraldine's partnership interest = 10%
This is because $10,000 is also her basis in the partnership interest and not $12,000 the fair market value of the 10% interest.
What is the ordinary interest paid on a loan of $1,200 for 120 days at a simple interest rate of 12% annually
Answer:
$48
Explanation:
Simple Interest = P*R* T / 100 where P = $1,200. R = 12, T=4
Simple interest = $1200 * 12 * 4/12 / 100
Simple interest = $12 * 12 * 4/12
Simple interest = $48
So, the ordinary interest paid on a loan of $1,200 for 120 days at a simple interest rate of 12% annually is $48.
What is the answer to George and Miguel are considering opening up a shoe store but first need to do market research. Which one of these is NOT part of the market research process?
A user is working with the range titled "Emp_Info” as shown in the Excel file below.
outlander spices - table In cell C6, the user has typed in the function =VLOOKUP(A6,Emp_Info,5,false). If the user does a VLOOKUP using Employee ID E007, what should appear in cell C6?
A. East
B. 000-78-8906
C. Accounts
D. Melissa James
Answer:
C. Accounts
Explanation:
Took the test
Andrea Mitchell has joined a real estate syndicate. The syndicate she belongs to was formed by one individual who sold participation units to Andrea and several others. The individual who sold the participation units has unlimited liability and manages the property. Andrea and the others can only lose their initial investment. What type of real estate syndicate has Andrea joined
Answer: Limited partnership
Explanation:
Syndication allows for people to afford real estate investments they would be unable to on their own because they are able to pool their recourses together thereby increasing the collective investment amount they have.
This is a Limited Liability partnership syndicate because in such a syndicate, there are two types of the partners: the General partner and the Limited partner. The General partner manages the property and has unlimited liability while the limited partners like Andrea Mitchell can only lose what they initially put in.
Net credit sales $120,000 Average accounts receivable 20,000 Cash collections on credit sales 100,000 What is the receivables turnover ratio
Answer:
6:1
Explanation:
Net credit sales is $120,000
Account receivable is $20,000
Cash collection on credit sales is $100,000
.
Therefore the receivables turnover ratio can be calculated as follows
= 120,000/20,000
= 6:1
Hence receivable turnover ratio is 6:1
Over the past several years, the beverage industry has been rapidly changing. New drinks are constantly being invented, and more and more companies are looking to market healthy drinks, with less sugar and fewer artificial sweeteners. This type of environment demands that a company have a structure that is more:
Answer:
Flexible
Explanation:
Flexible organisational structure is one that is informal and lacks management layers (flat structure).
This helps an organisation make decisions faster without waiting for approval at various levels of heirachy or departments within the organisation.
In the given scenario new drinks are constantly being invented, and more and more companies are looking to market healthy drinks, with less sugar and fewer artificial sweeteners.
Quick decisions on product change are needed and this is provided for by the flexible organisation structure.
Currently Digby is paying a dividend of $16.13 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield
Answer: 14.66%
Explanation:
Dividend yield = Dividend / Share price
The dividend being paid is $16.13 per share. As there is no share price given, I shall assume that the share price is $100. The new share price will be:
= 100 * (1 + 10%)
= $110
The Dividend yield would then become:
= 16.13 / 110
= 14.66%
(Use the above method and the share price in the question to find the specific answer to your question).
Sarratt Corporation contribution margin ratio is 75% and its fixed monthly expenses are $55,000. Assume that the company's sales for May are expected to be $114,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.
Answer:
$30,500
Explanation:
Given that;
Sales revenue = $114,000
Variable costs = $114,000 × (1 - 75%)
= $114,000 × 0.25
= $28,500
Fixed costs = $55,000
Therefore, net operating income = Sales revenue - Variable costs - Fixed costs
= $114,000 - $28,500 - $55,000
= $30,500
The estimated net operating income for May is $30,500
Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24 A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory at January 31, year 2, under the LIFO method is
Answer:
$5,850
Explanation:
Calculation to determine what The cost of the inventory at January 31, year 2, under the LIFO method is
Using this formula
Cost of inventory= January 28 units * Cost per unit + Remaining units *Cost per unit
Let plug in the formula
Cost of inventory= 100 units * $24 + 150 units *$23
Cost of inventory= $2,400 + $3,450
Cost of inventory= $5,850
Therefore The cost of the inventory at January 31, year 2, under the LIFO method is $5,850
Marketing Strategy Formulation
Goals indicate what a business unit wants to achieve; strategy answers how to get there.
Basic generic strategies
Overall cost leadership
The business works hard to achieve the lowest costs. The problem with this strategy is that other food trucks will usually emerge with still lower costs. The real key is for Chix and Waffles to achieve the lowest costs among those competitors adopting a similar differentiation or focus strategy.
Differentiation
The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market(s).
Focus
The business focuses on one or more narrow market segments rather than going after a large market. The food truck gets to know the needs of these segments and pursues either cost leadership or a form of differentiation within the target segments.
Goal Formulation
Goals are listed hierarchically, from most to least important. State the objectives quantitatively with a time line and a due date. Your goal at this point of your business plan is to execute the business plan in order to achieve the budgeted profits by the end of the first quarter of re-opening.
Examples
Goal #1: Achieve budgeted profits of __________ by July 31, 2021.
Strategy #1 - How are you going to do it? Develop a statement or series of statements that tell how you are going to achieve profit. Use your cost control course or purchasing course to list a series of actions that will achieve the following costs.
Actions: Food cost: __________
Bar cost: ___________
Labor cost: _________
Strategy #2
Goal #2: Achieve budgeted sales of __________ by July 31, 2021.
Strategy #1 - How are you going to do it? Develop a statement around one of the three generic strategies listed above.
Actions: Achieve cost leadership of our direct competition through ________________ (use of publicist, advertising, promotions, TV, etc.).
Strategy #2
Goal #3: Execute cultural values to embrace market to build concept loyalty and build repeat customer trial to 12 visits per quarter by July 31, 2021.
Strategy #1 – How are you going to establish a guest list and measure repeat patronage?
Actions:
Answer:
Marketing Strategy Formulation
Goals indicate what a business unit wants to achieve; strategy answers how to get there.
Basic generic strategies
Overall cost leadership
The business works hard to achieve the lowest costs. The problem with this strategy is that other food trucks will usually emerge with still lower costs. The real key is for Chix and Waffles to achieve the lowest costs among those competitors adopting a similar differentiation or focus strategy.
Differentiation
The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market(s).
Focus
The business focuses on one or more narrow market segments rather than going after a large market. The food truck gets to know the needs of these segments and pursues either cost leadership or a form of differentiation within the target segments.
Goal Formulation
Goals are listed hierarchically, from most to least important. State the objectives quantitatively with a time line and a due date. Your goal at this point of your business plan is to execute the business plan in order to achieve the budgeted profits by the end of the first quarter of re-opening.
Examples
Goal #1: Achieve budgeted profits of __________ by July 31, 2021.
Strategy #1 - How are you going to do it? Develop a statement or series of statements that tell how you are going to achieve profit. Use your cost control course or purchasing course to list a series of actions that will achieve the following costs.
Actions: Food cost: __________
Bar cost: ___________
Labor cost: _________
Strategy #2
Goal #2: Achieve budgeted sales of __________ by July 31, 2021.
Strategy #1 - How are you going to do it? Develop a statement around one of the three generic strategies listed above.
Actions: Achieve cost leadership of our direct competition through ________________ (use of publicist, advertising, promotions, TV, etc.).
Strategy #2
Goal #3: Execute cultural values to embrace market to build concept loyalty and build repeat customer trial to 12 visits per quarter by July 31, 2021.
Strategy #1 – How are you going to establish a guest list and measure repeat patronage?
Actions:
A cost-of-living adjustment clause: a. is required in all government employee contracts. b. forces an employer to increase wages at the same rate of inflation. c. is not allowed for private employees. d. states that no raise can be less than the rate of inflation. e. forces an employer to increase wages at a rate higher than inflation.
Answer:
b. forces an employer to increase wages at the same rate of inflation
Explanation:
In the case when the employer wants to rise the wages but it would be increased at the similar inflation rate so this represent the clause of the living cost adjustment also the living cost adjustment would remain the same
Therefore according to the given situation, the option b is correct
And, the rest of the solutions are wrong
reasons why managers may be reluctant to participate fully in setting budgets??
Answer:
Some managers are reluctant to participate in budgeting because they do not like to discuss financial matters. They may also feel like developing a budget stops flexibility.
Managers may be reluctant to fully participate in setting budgets due to several reasons. First, they may fear that by actively participating, they will be held accountable for meeting the budget targets, leading to increased pressure and scrutiny.
Second, managers may have limited knowledge or experience in financial matters, making them hesitant to engage in budgeting discussions. Third, they may perceive budgeting as a time-consuming process that distracts them from their primary responsibilities.
Additionally, managers might have concerns that their departmental needs and priorities will not be adequately considered, resulting in inadequate resource allocation. Overall, these factors can contribute to their reluctance to actively engage in the budgeting process.
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In January, 2018, ABC. sells a gift card for $50 and receives cash. In February, 2018, the customer comes back and spends $20 of their gift card on a water bottle. What would be the appropriate journal entry for the purchase of the water bottle?3
Answer and Explanation:
The journal entry to record the purchase of the water bottle is shown below:
Deferred Revenue $20
To Sales Revenue, $20
(being the purchase of the water bottle is recorded)
The deferred revenue is debited as it decreased the liability and the sales revenue is credited as it increased the revenue
The above journal entry should be recorded
Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses and a profit of $12.5 million in total over the next 5 years (all other things equal). Indi and Indrani decide
Answer:
open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million)
Explanation:
The computation is shown below;
Given that
Total marginal benefit = 12.5 million
And, the Total marginal cost = 7 million
Based on the above information
We can see that the new office should be opened as the marginal benefit would be more than the marginal cost
Therefore the first option is correct
And, the rest of the options would be incorrect
Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will: a. conduct an external wage survey. b. choose a grand strategy for his firm. c. search for the strengths, weaknesses, opportunities, and threats that impact his firm. d. develop a mission. e. do a cost/benefit analysis.
Answer:
c. search for the strengths, weaknesses, opportunities, and threats that impact his firm.
Explanation:
Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.
The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.
Generally, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.
In this scenario, Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will search for the strengths, weaknesses, opportunities, and threats that impact his firm.
Additionally, SWOT analysis is a strategic technique which is used by various companies or business firms to plan through the identification of its strength, weakness, opportunities and threats in relation to its business.
New shoes are on SALE. You find a pair you like for $85 dollars. But you only have $45 with you. So, you pay $40 and
Answer:
Explanation:Answer:
The balance amount owned in six months is $ 46.8
Explanation:
Given as :
The price of new shoes = $85
The amount paid for the shoes = $ 40
The balance amount for the shoes = $85 - $40 = $ 45
The rate of interest = 8%
the time period = 6 months = 0.5 years
From simple method
Simple interest =
or, Simple interest =
Or, Simple interest = = $1.8
So, Amount = Principal + Interest
or, Amount = $45 + $1.8 = $ 46.8
When an interviewer says, “Tell me about yourself,” you should feel free to talk openly about your personal life.
False
True
Answer:
False
Explanation:
You should tell them about your personality and how others see you. Take for example your strengths and weaknesses as a person, or about your traits. If they ask you about your personal life keep it brief, they don't need too much info about that rather a small aspect of it.
Answer:
TRUE
Explanation:
A company purchased a 3-acre tract of land for a building site for $450,000. The company demolished the old building at a cost of $22,000, but was able to sell scrap from the building for $2,500. The cost of title transfer was $1,400 and attorney fees for reviewing the contract was $700. Property taxes paid were $8,000, of which $750 covered the period after the purchase date. The capitalized cost of the land is:
Answer:
$478,850
Explanation:
Calculation to determine what The capitalized cost of the land is:
Using this formula
Capitalized cost of the land = Purchase cost + Old building Demolition + Cost of Title Transfer + Attorney fees + Property taxes paid - Building Scrap value
Let plug in the formula
Capitalized cost of the land= $450,000 + $22,000 + $1,400 + $700 + ($8,000 - $750) - $2,500
Capitalized cost of the land= $450,000 + $22,000 + $1,400 + $700 + $7,250 - $2,500
Capitalized cost of the land= $481,350 - $2,500
Capitalized cost of the land= $478,850
Therefore The capitalized cost of the land is: $478,850
Suppose you win the Publishers Clearinghouse $10 million sweepstakes. The money is paid in equal annual end-of-year installments of $333,333.33 over 30 years. If the appropriate discount rate is 5%, how much is the sweepstakes actually worth today
Answer:
the actual worth today is $5,124,150.29
Explanation:
The computation of the actual worth today is as follows:
= (Year end annual payments) ÷ (rate of interest) × (1 - (1 + rate of interest)^-time period
= ($333,333.33) ÷0.05 × (1 - (1 + 0.05)^-30
= $5,124,150.29
hence, the actual worth today is $5,124,150.29
The above formula should be applied
Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question part (a) What is the correct net income for 2017
Answer:
$96,870
Explanation:
The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.
If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.
Therefore, 2017 corrected net income
= $89,770 + $7,100
= $96,870
When treasury stock is resold for more than it was purchased, the difference between its cost and the cash received when resold:
Answer:
D. Increases stockholders' equity.
Explanation:
In the case when the treasury stock is resold for high amount that was buy so the difference occurs between the cost and the cash collected once it is resold should increase the stockholder equity
As when the treasury stock is sold, the journal entry is
Cash
To Treasury stock(cost value)
To Paid in capital from treasury stock
(being the treasury stock is sold)
So, It doesn't impact the income statement as it is shown in the stockholder equity
ellie has been working for an engineering firm and earning an annual salary of 80000 she decides to open her own engineering business her annual expenses will be
Answer:
A $185,700 revenue will yield Ellie's business $50,000 in economic profits.
Explanation:
Here is the complete question :
Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. Which of the following statements is correct?
A $185,700 revenue will yield Ellie's business $50,000 in economic profits. Ellie's annual accounting costs will equal $80,500.
A $185,700 revenue will yield Ellie's business $50,000 in accounting profits. Ellie's annual implicit costs will equal $55,200.
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Ellie's total explicit cost = office rent + rentals + supply + utilities + salary for a secretary
$15,000 + $3,000 + $1,000 + $35,000 + $1,200 = $55,200
If revenue is $185,700, accounting profit = $185,700 - $55,200 = $130,500
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Ellie's implicit cost = $80,000 + $500 = $80,500
Economic profit = $130,500 - $80,500 = $50,000