If profit after tax and interest is $400 000,interest expense is $50 000 and taxation expense is $84 000,profit before interest and tax is:
A) $450 000
B) $291 000
C) $534 000
D) $484 000

Question

Quizplus · Accepted Answer

Profit before interest and tax is calculated by adding back the interest expense and taxation expense to the profit after tax and interest. Therefore, $400,000 + $50,000 + $84,000 = $534,000.

If Profit After Tax and Interest Is $400 000,interest Expense