This Question: 1 pt
Tricia, a programmer, earned $25,000 in 2010, but in 2011, she opened a body board manufacturing business.
After one year, she submitted the information on the right to her accountant.
The accountant recorded the depreciation on Tricia's cottage during 2007 as $7,000.
According to the accountant, Tricia's profit is
A. $30,000
?. $65,800
C. $119,700
D. $72,800
? ?. $23,000
35 of 40 (0 complete) ?
Question Facts
i She stopped renting out her cottage for $3,500 a
year and used it as her factory. The market value
of the cottage increased from
$64,000 to $69,000.
ii She spent $20,000 on materials, phone, utilities,
etc.
iii She leased machines for $5,000 a year.
iv She paid $7,500 in wages.
v She used $20,000 from her savings account,
which earns 2 percent a year interest.
vi She borrowed $10,000 at 8 percent a year from
the bank.
vii She sold $160,000 worth of body boards.
viii Normal profit is $30,000 a year.
This Te