Scenario 5.1
A dentist's practice is organized as a sole proprietorship. Last year the dentist's total revenue was $320,000 and total costs were $250,000. The dentist left a job paying $112,000 a year to start the sole proprietorship.
-According to the information in Scenario 5.1, how much accounting profit did the dentist make last year?
A) $320,000
B) $208,000
C) $112,000
D) $70,000
E) -$42,000

Question

Quizplus · Accepted Answer

Accounting profit is calculated as total revenue minus total costs. Therefore, the accounting profit is $320,000 - $250,000 = $70,000.

Scenario 5.1 A Dentist's Practice Is Organized as a Sole Proprietorship. Last