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      Question

      A company has net profit before tax ₹4,00,000. Tax rate is 30% and deferred tax expense is ₹10,000. Net profit after deferred tax adjustment will be:

      A ₹2,70,000 Correct Answer Incorrect Answer
      B ₹2,80,000 Correct Answer Incorrect Answer
      C ₹2,90,000 Correct Answer Incorrect Answer
      D ₹3,00,000 Correct Answer Incorrect Answer
      E ₹2,60,000 Correct Answer Incorrect Answer

      Solution

      Tax expense current = 30% of 4,00,000 = 1,20,000. Deferred tax expense 10,000 increases total tax to 1,30,000. PAT = 4,00,000 − 1,30,000 = ₹2,70,000. Wait — re-evaluate: The correct math gives ₹2,70,000 (choice A). Correction: Answer: A. ₹2,70,000. Corrected Solution: Current tax = 1,20,000; add deferred tax expense 10,000 → total tax 1,30,000. PAT = 4,00,000 − 1,30,000 = ₹2,70,000.

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