Mathematics · Financial Accounting
A business has extracted a draft profit for the year of $85,000. It subsequently discovers that a purchase of a non-current asset for $12,000 was mistakenly recorded in the Purchases account. The business depreciates assets at 20% per annum on a straight-line basis, with a full year's charge in the year of acquisition. What is the corrected profit for the year after rectifying this error?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$97,000
- 2$75,400
- 3$94,600✓
- 4$73,000
Correct answer
$94,600
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