On January 9, 2013, Dr. Susan Tempkin established DocMed, a medical practice organized as a professional corporation. The below conversation took place the following September between Dr. Tempkin and a former medical school classmate, Dr. Phil Anzar, at an American Medical Association convention in London.
Dr. Anzar: Susan, good to see you again. Why didn’t you call when you were in Chicago? We could have had dinner together.
Dr. Tempkin: Actually, I never made it to Chicago this year. My husband and kids went to our Wisconsin Dells condo twice, but I got stuck in New York. I opened a new consulting practice this January and haven’t had any time for myself since.
Dr. Anzar: I heard about it . . . Doc . . . something . . . right?
Dr. Tempkin: Yes, DocMed. My husband chose the name.
Dr. Anzar: I’ve thought about doing something like that. Are you making any money? I mean, is it worth your time?
Dr. Tempkin: You wouldn’t believe it. I started by opening a bank account with $40,000, and my August bank statement has a balance of $215,000. Not bad for eight months—all pure profit.
Dr. Anzar: Maybe I’ll try it in Chicago. Let’s have breakfast together tomorrow and you can fill me in on the details.
Comment on Dr. Tempkin’s statement that the difference between the opening bank balance ($40,000) and the August statement balance ($215,000) is pure profit.