Table 221 The Accounting Profit Is Equal to
A)$925

Table 22.1 $$\begin{array}{l} \text { Assume an apple farmer incurs the following costs and revenues }\\\begin{array} {| l | r| } \hline \text { Fertilizer } & \$ 200 \\\hline \text { Seeds } & \$ 75 \\\hline \text { Water } & \$ 250 \\\hline \text { Wages } & \$ 750 \\\hline \text { Property taxes } & \$ 600 \\\hline \text { Interest payments on borrowed funds } & \$ 1,200 \\\hline \text { Bales of apples } & \$ 4,000 \\\hline\end{array}\end{array}$$ The accounting profit is equal to

A) $925.
B) $1,525.
C) $2,125.
D) $4,000.

Correct Answer:

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