Anna Is a Tax Accountant and She Left Her Job

Multiple Choice

Anna is a tax accountant and she left her job with a large public accounting company to start her own accounting office.In doing this, Anna gave up her salary of $120,000 and took $60,000 out of her savings (which was earning a return of 5 percent) to fund her startup.Her first year, she had $180,000 in revenues and had $40,000 in operating expenses.Anna's tax accounting business earned economic profits of

A) $140,000.
B) $17,000.
C) $20,000.
D) zero.