What is the correct profit for the year

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Question - On 1 January 20X5 a company purchased a new machine. The company has capitalized the following costs included on the purchase invoice: £ Cost of machine 48,000 Delivery to factory 400 Cost of training staff to operate the machine 800 49,200 Modifications to the factory building costing £2,200 were incurred to enable the machine to be installed and have been written off to administrative expenses. Depreciation at 20% on the straight-line basis has been calculated for the year ended 31 December 20X5. Draft profit for the year, before any corrections in respect of the machine, has been calculated as £42,600. What is the correct profit for the year after making any necessary corrections in respect of the machine?

Reference no: EM133072901

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