Answer the Next Questions Using the Following Annual Income Statement

Multiple Choice

Answer the next questions using the following annual income statement for Bonus Realty, Inc.:

$\begin{array}{c}\begin{array}{lll} \text { Revenues}\\ \text { Revenue from sales of goods and services}\\ \text { Operating costs and expenses:}\\ \text { Cost of products and services sold}\\ \text { Selling expenses}\\ \text { Administrative expense}\\ \text { Total operating costs and expenses}\\ \text { Income from operations}\\ \text { Interest expense (corporate bonds \& loans) }\\ \text { Non-recurring expense (Legal expenses/fines in}\\ \text { settling a federal antitrust suit) }\\ \text { Income taxes.}\\ \text { Net income}\\ \end{array}\begin{array}{r}\\\$ 100,000,000 \\\\\$ 30,000,000 \\\$ 3,000,000 \\\underline{\$ 4,000,000} \\\underline{ \$ 37,000,000} \\\$ 63,000,000 \\\$ 500,000 \\\\\$ 100,000 \\\underline{\$ 740,000} \\\underline{\underline{\$ 61,660,000 }}\\ \end{array}\end{array}$

During this year of operation, Bonus Realty owned and occupied an office building in downtown Cleveland. For this year, the building could have been leased to other businesses for $3,000,000 in lease income. Bonus Realty also owned undeveloped land valued at $10,000,000. Owners of Bonus Realty can earn a 4% rate of return annually on funds invested elsewhere.
-Total implicit costs of using owner-supplied resources for Bonus Realty for this year are

A) $3,400,000
B) $13,000,000
C) $14,000,000
D) $37,000,000
E) none of the above