The adjusted profit of Stallone Retailers for the year ended December 31, Year 6 is £115,400.
Data Analysis:
1. Motor Van £8,000 Motor running expense £8,000
Depreciation expense  £1,600 Accumulated depreciation £1,600 ( £8,000 x 20%)
2. Cost of goods sold £3,000 Inventory £3,000
3. Drawings  £4,000 Inventory  £4,000
4. Loan  £2,200 Cash  £2,200
<u>Adjustment of Profit</u>
Profit before the errors  £112,000
Adjustments:
Motor running expense   £8,000
Depreciation expense    (£1,600)
Cost of goods sold         (£3,000)
Adjusted profit            £115,400
Thus, the adjusted profit is now £115,400.
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