James had $80 000 in the bank. He used some of this cash to buy a new car for $67 000 on 1 January. He subsequently modified the car, at no cost, and sold it for $78 000 on 1 March. What profit did James make from the sale of the car?
A) $3000
B) $8000
C) $11 000
D) $14 000

Question

Quizplus · Accepted Answer

To calculate the profit made by James, we need to subtract the cost of buying the car from the selling price of the car.

Profit = selling price - cost price

Cost price = $67 000 (the amount James paid for the car)
Selling price = $78 000 (the amount James sold the car for)

Profit = $78 000 - $67 000 = $11 000

Therefore, James made a profit of $11 000 from the sale of the car. The correct answer choice is C.

James Had $80 000 in the Bank