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: a.$1,640,000 b.$1,530,000 c.$1,540,000 d.$1,622,000

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: a.$1,640,000 b.$1,530,000 c.$1,540,000 d.$1,622,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8Q: Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000...

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