Answer the Next Questions Using the Following Annual Income Statement

question 32

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 economic profit is

---

Definitions:

Intellectually Disabled

A term describing individuals who have significant limitations both in intellectual functioning and in adaptive behavior, encompassing many everyday social and practical skills.

Underachiever

An individual, typically a student, who performs significantly below their potential or abilities in academic settings.

Highly Intelligent

A description for individuals who possess superior cognitive processing capabilities, often reflected in high IQ scores or exceptional problem-solving abilities.

Intellectual Disability

A term for significantly below-average cognitive ability present from birth or early childhood that impacts adaptive behaviors such as everyday social and practical skills.