During 2011 lele design earned net income of 250000 the

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During 2011, Lele Design earned net income of $250,000. The firm neither bought nor sold any capital assets. The book value of its assets declined by the year's depreciation charge of $200,000. The firm's operating cash flow for the year was $450,000. The market value of its assets increased by $300,000. Please ignore taxes for this problem.

a. What was Lele Design's economic income for the year?
b. Why is this figure different from its accounting income?

Reference no: EM13597323

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