Profit via net worth method (closing minus opening net assets)

Steps:

• Opening net assets: $100 (initial bank deposit; taxi cost treated as separate personal contribution not added to opening capital).
• Closing net assets: $1750 (bank) +$400 (taxi value) - $50 (liability) =$2100.
• Profit: $2100 -$100 = $2000 (drawings reduce capital but are not added back here).

Why B is correct:

• Matches the accounting formula for profit as the increase in net assets under the net worth method for incomplete records.

Why the others are wrong:

• A: Bank balance change only ($1750 -$100 = $1650), ignores taxi value and liability.
• C: Bank change plus drawings ($1650 +$600 = $2250), treats drawings as income and skips asset/liability adjustments.
• D: Excessively high, likely from adding unadjusted totals like closing bank plus opening inputs without deductions.

Final answer: B