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Question - Ark plc had net assets of £1.2 million at 1 January 2021, made a profit after tax of £500,000 for the 12 months ending 31 December 2021 and paid no dividend in this period. If total share capital is £1 million throughout this period and there are no other reserves, what is the retained profit at 31 December 2021?
a. £500,000
b. £700,000
c. £1,000,000
d. £1,200,000
e. None of the above
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