True Blue Ltd is reviewing its accounting policies and estimations. Detailed below are its current policies and estimations. Using these current policies, the company’s calculated profit figure is $840000. What would True Blue Ltd’s profit be if the alternative accounting policies and estimations are applied?

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Depreciation rate for plant and equipment with a cost price of $600 000 and residual value of $100 000 Accounts receivable impairment Accounts receivable (gross) Development expenditure Current 20% straight-line 2% of gross accounts receivable $200 000 $40 000 expensed Alternative 50% diminishing balance 5% of gross accounts receivable $40 000 capitalised