A business statement of profit or loss and other comprehensive income for the year ended 31 December 20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company's policy to depreciate motor vans at 25 per cent per year, with a full year's charge in the year of acquisition. What would the net profit be after adjusting for this error? A $106,100 B $70,100 C $97,100 D $101,600

Question

A business statement of profit or loss and other comprehensive income for the year ended 31 December

20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor

van had been debited to motor expenses account. It is the company's policy to depreciate motor vans at

25 per cent per year, with a full year's charge in the year of acquisition.

What would the net profit be after adjusting for this error?

A $106,100

B $70,100

C $97,100

D $101,600

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