Albie Operates an Illegal Drug-Running Business and Has the Following

question 85

Essay

Albie operates an illegal drug-running business and has the following items of income and expense.What is Albie's adjusted gross income from this operation?
Income
$800,000
Expenses:
Rent
24,000
Utilities
9,000
Bribes to police
55,000
Medical expense
5,000
Legal fees
25,000
Depreciation
30,000
Illegal kickbacks
30,000
Cost of goods sold
300,000

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Definitions:

Opportunity Costs

Choosing one option results in the forfeiture of potential gains from other available choices.

Sitting in Traffic

The state of being in a vehicular traffic jam, often resulting in delayed travel times and increased frustration.

Adverse Selection

A market process in which undesired results occur due to information asymmetry between buyers and sellers, where one party has more or better information than the other.

Sellers' Ratings

Evaluations or scores given to sellers based on their performance, product quality, and customer service, often found on e-commerce platforms.