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A corporation has $7 million in equity. During the tax year it takes in $4 million in receipts and earns $2 million in capital gains from sale of a...

A corporation has $7 million in equity. During the
tax year it takes in $4 million in receipts and earns
$2 million in capital gains from sale of a subsidiary.
It incurs labor costs of $1 million, interest costs of
$250,000, material costs of $500,000, and pays rent
for structures of $250,000. Calculate the corporation’s
total accounting profit

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