Why is this figure different from its accounting income

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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. Based only on this information, what was Lele Design’s economic income for the year? Why is this figure different from its accounting income? Please ignore taxes for this problem.

Reference no: EM13847486

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