The Table Below Provides the Total Revenues and Costs for a Small

Multiple Choice

The table below provides the total revenues and costs for a small landscaping company in a recent year. $\begin{array}{|l|l|}\hline \text { Total R evenues (\$) } & 250000 \\\hline & \\\hline \text { Total Costs (\$) } & \\\hline \text { - wages and salaries } & 150000 \\\hline \text { risk- free return of } 2 \% \text { on owner's capital of } \$ 20000 & 400 \\\hline \text { - interest on bank loan } & 1500 \\\hline \text { cost of supplies } & 27000 \\\hline \text { - depreciation of capital equipment } & 8000 \\\hline \text { - additional wages the owner could have earned in next } & 30000 \\\text { best alternative } & \\\hline \text { - risk premium of } 4 \% \text { on owner's capital of } \$ 20000 & 800 \\\hline\end{array}$ TABLE 7- 2
-Refer to Table 7- 2.The accounting profits for this firm are

A) $63 500.
B) $32 700.
C) $63 100.
D) $32 300.
E) $71 500.