The Net Profit Before Tax is $$1,500,000.$ You receive the following notes:

Professional fees include legal fees of $$40,000$ incurred in defending a legal action brought against the company by an irate employee for wrongful dismissal.

Bad debt expenses of $$42,000$ include $$12,000$ of this amount is owed by a corporate customer who has gone out of business. The balance is a general provision for doubtful debts based on estimates.

Donations include an amount of $$10,000$ for political donations.

Repairs and maintenance capitalized $$100,000$

You have calculated the adjusted profit to be:

Question $49$Answer

a$.$

$$1,640,000$

b$.$

$$1,540,000$

c$.$

$$1,622,000$

d$.$

$$1,530,000$