Last year, the accounting ledger for the owner of a small drug store showed the following information about her annual receipts and expenditures (assume there are no taxes):

Revenues	S1,000,000
Wages paid to hired labor (other than herself)	$300,000
Utilities (fuel, telephone, water)	$20,000
Purchases of drugs and other supplies for the store	$500,000
Wages paid to herself	$100,000

She already owns the building, so she pays no money for its use. If she were to close the business, she could avoid all expenses and she could rent out her building for $200,000. She could also work elsewhere herself. Her two employment alternatives include working as a lawyer, earning wages of $100,000, or working at a local restaurant, earning $20,000.

a) Using the information from the ledger, calculate the accounting profit of this small business. What is the store owner's corresponding economic profit? If the two are different, explain the difference.

b) Now suppose she doesn't pay herself wages. What are the accounting and economic profit in this case?