Answer the Next Questions Using the Following Annual Income Statement

question 53

Multiple Choice

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

$\begin{array}{c}\begin{array}{lll} \text { Revenues}\\ \text { Revenue from sales of goods and services}\\ \text { Operating costs and expenses:}\\ \text { Cost of products and services sold}\\ \text { Selling expenses}\\ \text { Administrative expense}\\ \text { Total operating costs and expenses}\\ \text { Income from operations}\\ \text { Interest expense (corporate bonds \& loans) }\\ \text { Non-recurring expense (Legal expenses/fines in}\\ \text { settling a federal antitrust suit) }\\ \text { Income taxes.}\\ \text { Net income}\\ \end{array}\begin{array}{r}\\\$ 100,000,000 \\\\\$ 30,000,000 \\\$ 3,000,000 \\\underline{\$ 4,000,000} \\\underline{ \$ 37,000,000} \\\$ 63,000,000 \\\$ 500,000 \\\\\$ 100,000 \\\underline{\$ 740,000} \\\underline{\underline{\$ 61,660,000 }}\\ \end{array}\end{array}$

During this year of operation, Bonus Realty owned and occupied an office building in downtown Cleveland. For this year, the building could have been leased to other businesses for $3,000,000 in lease income. Bonus Realty also owned undeveloped land valued at $10,000,000. Owners of Bonus Realty can earn a 4% rate of return annually on funds invested elsewhere.
-Bonus Realty's accounting profit is

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Definitions:

Airfreight

The transportation of goods by aircraft, often used for moving high-value or time-sensitive products over long distances quickly.

Accessibility

The ease with which people can reach, enter, or access a place, product, or service, often considering those with disabilities.

Supply Chain

The entire system comprising people, organizations, resources, processes, and technology that participate in producing and selling a good, starting from supplying raw materials to manufacturing and eventually reaching the consumer.

Upstream

In supply chain and production, it refers to the early stages involving raw materials and the initial steps of manufacturing or processing.