On 1 July 20X0 Newmarkets Ltd acquired a customer list for $2,000,000. The customer list was recognised as part of intangible assets and amortised over 10 years.

The draft financial statements are presented below:

	Before change $000	% of total assets
Total assets (includes customer list $1,800,000)	8,400	100
Total liabilities (including a long-term debt agreement)	5,000	60
Shareholders equity	3,400	40
Profit before tax (includes amortisation expense of $200,000)	2,200	26

Ignore taxes.

The new accountant suggests accounting for the customer list as an expense.

If instead, the customer list is accounted for as an expense, profit before tax would be

Group of answer choices

$2 400 000

$400 000

$200 000

$6 600 000