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Jack currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he establishes himself. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. He could hire a law clerk for $35,000 per year. Jack would like to know if his legal practice is profitable. Besides, Jack would have to quit his current job, where he is earning an annual salary of $125,000 As an economist, you advise him using your knowledge about explicit costs, accounting profit, implicit costs, and economic profit (Question 6-10) 6- The total explicit costs related to the legal practice firm that you find is a $50,000 b. $35000 c. $85000 d. $115000 7- The implicit cost related to legal practice firm that you find is a. $115,000 b. $125000 c. $85,000 d. $200,000 8- Jack's legal practice firm accounting profit is a. $115,000 b. $200,000 c. $85,000 d. $325,000 fot I Kwaku | 1

Jack currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he establishes himself. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. He could hire a law clerk for $35,000 per year. Jack would like to know if his legal practice is profitable. Besides, Jack would have to quit his current job, where he is earning an annual salary of $125,000 As an economist, you advise him using your knowledge about explicit costs, accounting profit, implicit costs, and economic profit (Question 6-10) 6- The total explicit costs related to the legal practice firm that you find is a $50,000 b. $35000 c. $85000 d. $115000 7- The implicit cost related to legal practice firm that you find is a. $115,000 b. $125000 c. $85,000 d. $200,000 8- Jack's legal practice firm accounting profit is a. $115,000 b. $200,000 c. $85,000 d. $325,000 fot I Kwaku | 1

FINANCIAL ACCOUNTING
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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8- Jack's legal practice firm accounting profit is a. $115,000 b. $200,000 c. $85,000 d. $325,000
Transcribed Image Text:8- Jack's legal practice firm accounting profit is a. $115,000 b. $200,000 c. $85,000 d. $325,000
Jack currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he establishes himself. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. He could hire a law clerk for $35,000 per year. Jack would like to know if his legal practice is profitable. Besides, Jack would have to quit his current job, where he is caring an annual salary of $125,000 As an economist, you advise him using your knowledge about explicit costs, accounting profit, implicit costs, and economic profit (Question 6-10) 6- The total explicit costs related to the legal practice firm that you find is a. $50,000 b. $35000 c. $85000 d. $115000 7- The implicit cost related to legal practice firm that you find is $115,000 a b. $125000 c. $85,000 d. $200,000 8- Jack's legal practice firm accounting profit is a $115,000 b. $200,000 I c. $85,000 d. $325,000 Kwaku | 1
Transcribed Image Text:Jack currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he establishes himself. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. He could hire a law clerk for $35,000 per year. Jack would like to know if his legal practice is profitable. Besides, Jack would have to quit his current job, where he is caring an annual salary of $125,000 As an economist, you advise him using your knowledge about explicit costs, accounting profit, implicit costs, and economic profit (Question 6-10) 6- The total explicit costs related to the legal practice firm that you find is a. $50,000 b. $35000 c. $85000 d. $115000 7- The implicit cost related to legal practice firm that you find is $115,000 a b. $125000 c. $85,000 d. $200,000 8- Jack's legal practice firm accounting profit is a $115,000 b. $200,000 I c. $85,000 d. $325,000 Kwaku | 1
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