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Black Ltd's accounting profit for the year ended 31/12/2016 was $1,800,000. The following items have been charged or credited to the profits and loss account
Black Ltd's accounting profit for the year ended 31/12/2016 was $1,800,000. The following items have been charged or credited to the profits and loss account in arriving at $1,800,000. Profit on sale of patent right of $50,000 was credited. The patent was acquired during the year 2008 at $200,000 and was sold during the year ended 31/12/2016 for $250,000. Full tax deduction was claimed in the year of acquisition in respect of the cost of patent. Annual contribution to MPF of $180,000 was charged (salary of the relevant staff for the year was $1,000,000. Black Ltd's assessable profit for the year of assessment 2016/17 is: Select one: a. $1,980,000. b. $2,030,000. c. $1,780,000. d. None of the above
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