i)Calculate the total annual economicimplicit costs of Jenny's new business.Show your workings and list the expense items respectively.

(a) Jenny is working currently as an Accountant. Her current monthly salary is $40,000. Jenny plans to quit herjob and start her own business. She has drafted herself an accounting income statement for the coming year if she runs her new business. Drafted Accounting Income statement for the year ended 31 December 5 5 Service revenue 2,400,000 Less: Expenses Salaries for Andrew (Junior Accountant) 270,000 Salaries for Sally (Junior Accountant) 270,000 Depreciation: Office equipment 42,000 Utility expense 400,000 982,000 Net Income 1,418,000 To finance the business, Jenny has to withdraw her time deposit of $1,400,000 with an annual interest rate of 4% from the bank. She can use her premises to set up the office and the monthly rent of an office is $20,000. She will use $420,000 to purchase the equipment and furniture. According to the market information, the resale value of the equipment and furniture is $250,000 after one year. (For question 1 (a) (i) and (ii), NO Accounting vertical format of calculation is accepted and significant mark penalty will be given for wrong data presentation format. Students should make reference to the exercises of tutorial 6 for the correct format of presenting the working steps). i) Calculate the total annual economic implicit costs ofJenny's new business. Show your workings and list the expense items respectively. (5 marks) ii) Calculate the total economic profit of Jenny's new business. Show your workings and list the expense items respectively. (5 marks) iii) Based on your findings, briefly explain whether you support Jenny's plan to start the business