Question
Sarah owns a loft in downtown Toronto that she uses to run her painting business. She spends $25,000 per year on painting supplies and she
Sarah owns a loft in downtown Toronto that she uses to run her painting business. She spends $25,000 per year on painting supplies and she makes $110,000 per year in revenues from selling her paintings. Sarah recently received two offers to rent out her loft, one for $22,000 and one for $20,000. If she rents out her loft, she also can work another job and make a yearly salary of $30,000.
What are Sarah's accounting profits?
What are Sarah's economic profits?
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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
