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    Question

    A firm's profit before tax is ₹6,00,000. Tax rate 25%.

    Profit after tax is:
    A ₹4,50,000 Correct Answer Incorrect Answer
    B ₹5,00,000 Correct Answer Incorrect Answer
    C ₹4,00,000 Correct Answer Incorrect Answer
    D ₹3,75,000 Correct Answer Incorrect Answer

    Solution

    Tax Expense = 25% of ₹6,00,000 = ₹1,50,000. Profit After Tax (PAT) = Profit Before Tax − Tax Expense = 6,00,000 − 1,50,000 = ₹4,50,000.

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