Using the following information,calculate net profit before tax.
A) $160 000.
B) $200 000.
C) $220 000.
D) $260 000.

Question

Using the following information,calculate net profit before tax. 
A) $160 000. 
B) $200 000. 
C) $220 000. 
D) $260 000.

Quizplus · Accepted Answer

Net profit before tax can be calculated by subtracting total expenses from total revenue. The total revenue from the given information is $1,000,000 and the total expenses are $700,000. Therefore, the net profit before tax is $300,000. However, in the given options, the net profit before tax is to be calculated after deducting interest expenses of $100,000. So, the net profit before tax would be $200,000, which is option B.

Using the Following Information,calculate Net Profit Before Tax