Junko earns a yearly salary of $130,000 in her job and $1,000 per year in interest on her savings. After she quits her job to start a company, she uses all her savings to purchase manufacturing equipment for her company. Given the above information and the data summarizing her first year in business in the table, how much accounting profit or loss does Junko earn?
$${ \text { Table } } \
\begin{array} { | l | l | }
\hline \text { Total revenue } & \text { Bills paid } \
\hline \$ 350,000 & \$ 200,000 \
\hline
\end{array}$$
A)$19,000
B)$21,000
C)$150,000
D)$171,000

Question

Junko earns a yearly salary of $130,000 in her job and $1,000 per year in interest on her savings. After she quits her job to start a company, she uses all her savings to purchase manufacturing equipment for her company. Given the above information and the data summarizing her first year in business in the table, how much accounting profit or loss does Junko earn?
$${ \text { Table } } \
\begin{array} { | l | l | } 
\hline \text { Total revenue } & \text { Bills paid } \
\hline \$ 350,000 & \$ 200,000 \
\hline
\end{array}$$
A)$19,000
B)$21,000
C)$150,000
D)$171,000

Quizplus · Accepted Answer

Junko's accounting profit is calculated as total revenue minus explicit costs (bills paid). So, $350,000 - $200,000 = $150,000.

Junko Earns a Yearly Salary of $130,000 in Her Job