Martina Bridgeman is a lawyer employed by a large law firm at a salary of $110,000 per year. She is considering whether to become a sole practitioner, which would probably generate $350,000 in operating revenues and $220,000 in operating expenses annually. 

1. Present two tabulations of the annual income effects of these alternatives. The second tabulation should include the opportunity cost of Bridgeman’s compensation as an employee. 

2. Suppose Bridgeman prefers less risk and chooses to stay an employee. Show a tabulation of the income effects of rejecting the opportunity of independent practice.