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Hal opened a shoe-repair shop last year. During the year 2021, between January and December, Hal's shop brought in $125,000 in revenue. Hal has
Hal opened a shoe-repair shop last year. During the year 2021, between January and December, Hal's shop brought in $125,000 in revenue. Hal has two employees, who do most of the shoe repairs, who receive a total salary (added up across the tw of them) of $62,500. Hal paid a total of $33,000 in repair supplies and utilities for the shop. The market value of Hal's equipment and repair machines was $24,000 at the beginning of the year; at the en of the year, the market value was $18,500. Hal used his own business talent and skills to run the shop; these entrepreneurial skills had an annual value $39,000. In addition, Hal spent some of his time working on shoe repairs himself at his shop; if he had spent that time working for another shoe-repair shop instead, he would have earned $33,500 over the year. If Hal had invested his money in a different investment opportunity, instead of investing in opening his own shoe-repair shop, he would have earned $4,500 in interest on that alternative investment at the end of the ye Hal's accountant has determined that accounting depreciation on his equipment over the year was $7,500. Complete the following table with correct economic terms in the Item Column and correct numbers in the Amount Column. Hint: use the following (shuffled) terms to complete the table (don't add the bullet point in front of your answer): . Economic Depreciation Owned by the Firm Implicit Rental Rate Supplied by the Owner Wages Normal Profit Bought in the Market Item Revenue Table 11. Costs of Resources Supplies & Utilities 2. Costs of Resources Foregone interest 3. Cost of Resources Forgone Wage Economic Profit Table 2 Accounting Depreciation Accounting Profit Total Expense: Total Owner's Oppor. Cost: Amount
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Based on the provided information lets fill the table with the appropriate economic terms and calculate the values for each Revenue Hals shop brought ...Get Instant Access to Expert-Tailored Solutions
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