Answer the Next Questions Using the Following Annual Income Statement

question 12

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.
-Total implicit costs of using owner-supplied resources for Bonus Realty for this year are

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Definitions:

Ethnic Differences

Variations in behaviors, traditions, practices, and beliefs observed between distinct ethnic groups or cultures.

Intelligence Test Scores

Numeric scores derived from assessments designed to measure an individual's cognitive abilities in comparison to a population norm.

Subjectively Biased Judgments

Evaluations or decisions made based on personal feelings, tastes, or opinions rather than on objective reality, evidence, or rationality.

Discrimination

(1) In classical conditioning, the learned ability to distinguish between a conditioned stimulus and similar stimuli that do not signal an unconditioned stimulus; in operant conditioning, the ability to distinguish responses that are reinforced from similar responses that are not reinforced. (2) In social psychology, unjustifiable negative behavior toward a group or its members.