Net reserves for the year end 2017 = $230,000

Net reserves for the year end 2018 = $360,000

Profit remained with the company after dividends and taxes = Net reserves for the year end 2018 - Net reserves for the year end 2017

= $360,000 - $230,000

= $130,000

Profit after taxes = Profit remained with the company after dividends and taxes + Dividends payment

Profit after taxes = 130,000 + 110,000

Profit after taxes = $240,000

Profit before tax * (1 - Tax rate) = Profit after taxes

Profit before tax = Profit after taxes  / (1 - Tax rate)

Profit before tax = 240,000 / (1 - 40%)

Profit before tax = 240,000 / 0.60

Profit before tax = $400,000

Therefore option A is correct and we get the profir before taxes to be $400,000