Until Recently You Worked as an Accountant, Earning $30,000 Annually

Multiple Choice

Until recently you worked as an accountant, earning $30,000 annually. Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually. You decided to leave your job and operate a video rental store in the office space you inherited. At the end of the first year, your books showed total revenues of $60,000 and total costs of $30,000 for video purchases, utilities, taxes, and supplies. What is the total cost of operating the video store?

A) $60,000
B) $42,000
C) $30,000
D) $12,000
E) none of the above