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      Question

      Which of the following statement is

      incorrect?
      A Pre-incorporation profits is treated as a part of business acquisition cost ( Goodwill) Correct Answer Incorrect Answer
      B Pre-incorporation profits can be used for writing off preliminary expenses Correct Answer Incorrect Answer
      C Pre-incorporation profits can be used for paying up partly paid shares Correct Answer Incorrect Answer
      D Pre-incorporation profits is transferred to capital reserve account Correct Answer Incorrect Answer

      Solution

      The correct answer is A

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