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An entity made a profit of CAD 550,000 for the year 2020 based on historical cost accounting principles. It had opening capital of CAD 1,500,000.

An entity made a profit of CAD 550,000 for the year 2020 based on historical cost accounting principles. It had opening capital of CAD 1,500,000. During 2020, specific prices indices increased by 15% while general price indices increased by 10%. How much profit should be recorded for 2020 under physical capital maintenance concept? Group of answer choices CAD 325,000 CAD 400,000 CAD 467,500 CAD 495,000

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