Answer the Next Questions Using the Following Annual Income Statement

question 3

Multiple Choice

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

$\begin{array}{c}\begin{array}{lll} \text { Revenues}\\ \text { Revenue from sales of goods and services}\\ \text { Operating costs and expenses:}\\ \text { Cost of products and services sold}\\ \text { Selling expenses}\\ \text { Administrative expense}\\ \text { Total operating costs and expenses}\\ \text { Income from operations}\\ \text { Interest expense (corporate bonds \& loans) }\\ \text { Non-recurring expense (Legal expenses/fines in}\\ \text { settling a federal antitrust suit) }\\ \text { Income taxes.}\\ \text { Net income}\\ \end{array}\begin{array}{r}\\\$ 80,000,000 \\\\\$ 30,000,000 \\\$ 3,000,000 \\\underline{\$ 4,000,000 }\\ \underline{\$ 37,000,000 }\\ \$ 43,000,000 \\\$ 300,000 \\\\\$ 200,000 \\\underline{\$ 700,000} \\\underline{\underline{ \$ 41,800,000}} \\ \end{array}\end{array}$
During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere.
-Quest's total economic cost is

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Definitions:

Milligrams

A unit of mass equal to one thousandth of a gram.

Caloric Intake

The total amount of calories consumed through eating and drinking, integral to managing energy balance and nutritional health.

Restaurants

Establishments that prepare and serve food and beverages to customers in exchange for money, varying widely in appearance and offerings.

Daily

Refers to events or actions occurring every day or on a day-to-day basis.