Question

Jeffrys company reports depreciation expense of $48000 for Year 2. Also equipment costing $164000 was sold for $10800 loss in year 2.

Answer 1

The firm's accounting profit can be calculated by subtracting all the costs from the sales revenue.

Step-by-step explanation:

The question is related to accounting profit, And subject is Mathematics.

To calculate the firm's accounting profit, it needs to subtract all the costs (explicit and implicit) from the sales revenue. In this case, the explicit costs are labor, capital, and materials, which amount to $600,000 + $150,000 + $200,000 = $950,000. So, the accounting profit is $1,000,000 - $950,000 = $50,000.