During 2011,Lele Design Earned Net Income of $250,000

question 11

Essay

During 2011,Lele Design earned net income of $250,000.The firm neither bought nor sold any capital assets.The book value of its assets declined by the year's depreciation charge of $200,000.The firm's operating cash flow for the year was $450,000.The market value of its assets increased by $300,000.What was Lele Design's economic income for the year?
Why is this figure different from its accounting income?
Please ignore taxes for this problem.

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