A business had a draft profit for the year of $\$ 200000$.
The following items were then discovered.
1 Depreciation charges had been overstated by $\$ 20000$.
2 The value of closing inventory was overstated by $\$ 15000$.
3 A year-end accrual for wages was needed, $\$ 8000$.
4 A year-end adjustment for prepaid insurance, $\$ 2500$, was required.
What was the corrected profit for the year?
1 )
$\$ 159500$
$\$ 199500\;$
3 )
$\$ 240500$
4 )
$\$ 245500$
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