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Hi Mr John…In direct method, why did you add profit on sale of non assets to Admin expenses…I can’t understand this….Thank you…In lecture you said, this reduced admin and dist expenses by that amount…How?
The question says the the profit on sale had been netted off admin expenses.
Therefore the total admin expense was after subtracting the profit on sale (because the profit is income – like a negative expense). So to get the admin expense excluding the profit on sale, we need to add the profit on sale.
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