John fishes for a living.Last year,he sold $100,000 of fish.Bait,nets and other fishing supplies cost John $10,000 and he paid $40,000 in salaries to his helpers.Depreciation on his boat and other equipment,as calculated using IRS rules,was $15,000.What was John's profit as would be calculated by an accountant?

Question

Quizplus · Accepted Answer

John's profit is calculated as total revenue minus total expenses. His revenue was $100,000, and his expenses were $10,000 (supplies) + $40,000 (salaries) + $15,000 (depreciation) = $65,000. Therefore, his profit is $100,000 - $65,000 = $35,000.

John Fishes for a Living