Chantal Has a Full-Time Job as a Geological Engineer and Earns

question 83

Multiple Choice

Chantal has a full-time job as a geological engineer and earns an annual after-tax salary of $85 000.She decides to leave her job for 6 months to scuba dive on the Great Barrier Reef in Australia,and incurs costs of $7500 for course equipment and certification,$2500 for airfare,and $12 000 for regular living expenses in Australia (equal to her living expenses at home) .What is Chantal's opportunity cost for this 6-month,unpaid leave of absence?

• A)$12 000
• B)$22 000
• C)$42 000
• D)$52 500
• E)$65 000

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Definitions:

Revenue Accounts

Accounts that record the income a company generates from its business activities.

Credit Balances

Balances within accounts that indicate the amount owed to a creditor; commonly found in liability and equity accounts.

Stockholders' Equity

Shareholders' equity in a corporation, defined by the excess of asset value over the amount of liabilities.

Interest Expense

The cost incurred by a company for borrowing funds, represented as the interest payments made on any borrowed capital.