1. Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $38 400 per year. About the same time, Emily inherited $60 000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 5 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $81 000 and total explicit costs of $42 000. What was Emily's accounting profit or loss for the year?

1. Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $38 400 per year. About the same time, Emily inherited $60 000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 5 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $81 000 and total explicit costs of $42 000. What was Emily's accounting profit or loss for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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