Sam quiet a $30,000 a year job with a local heating and air conditioning firm to go into business for himself.

1.      Sam quiet a $30,000 a year job with a local heating and air conditioning firm to go into business for himself. After his first year in business, his accountant showed him an income statement, which indicated Sam's firm has a profit of $40,000. During this year, Sam drew a salary of $20,000.

a.      What were Sam's accounting profit and entrepreneurial profit?

b.     Explain the difference between accounting profit and entrepreneurial profit?