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Assume the Koehn Kitchen Corporation, a manufacturer of kitchen gadgets, experiences the following losses:
The Goldman Cat House is a pet store catering to the needs of felines. The store is a sole proprietorship, taking in revenues of approximately $1,700,000 annually. Products available include kittens, cat food, cat toys, cages, collars, cat litter and litter boxes, and manuals on cat care. One manual was written by the store owner, who also makes up his own concoction for cat litter. All other goods are purchased from national wholesalers. Two part-time and two full-time employees work for Goldman. Sometimes the employees deliver goods to Goldman customers.