Question $3$:

Jack is a computer programmer who earned $$40,000$ in $2021.$ But on January $1,2022,$ Jack opened a body board manufacturing business. At the end of the first year of operation, he submitted the following information to his accountant:

He stopped rentin out his cottage for $$7,000$ a year and used it as his factory.

He spent $$60,000$ on materials, phone, etc.

He leased machines for $$12,000$ a year.

He paid $$17,000$ in utilities.

He paid $$25,000$ in wages.

A$.$ Calculate JaCk's accounting cost in $2021$$

B$.$ Calculate Jack's economic cost in $2021$