What are accounting profits for the year

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An individual leaves a college faculty, where she was earning $50,000 a year, to begin a new venture. She invests her savings of $20,000, which were earning 10 percent annually. She then spends $20,000 renting office equipment, hires two students at $30,000/student a year, rents office space for $15,000 and has other variable expenses of $50,000. At the end of the year, her revenues are $240,000.

What are her accounting profits for the year?

What are her economic profits for the year?

(Be sure and show your work for both questions)

Reference no: EM131897243

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