A partial income statement from Quest Realty, Inc. is shown below:

In 2008, Quest Realty owned and occupied an office building in downtown Indianapolis. The building could have been leased to other businesses for $2,000,000 in lease income for 2008. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return on funds invested elsewhere.
-Economic profit in 2008 is

Question

A partial income statement from Quest Realty, Inc. is shown below:
  
In 2008, Quest Realty owned and occupied an office building in downtown Indianapolis. The building could have been leased to other businesses for $2,000,000 in lease income for 2008. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return on funds invested elsewhere.
-Economic profit in 2008 is

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and implicit costs from total revenue. Without specific details on revenues, explicit costs (like wages, rent, materials), and implicit costs (like opportunity costs), it's impossible to determine the correct economic profit from the options provided.

A Partial Income Statement from Quest Realty, Inc