A company’s statement of financial position at the beginning of the financial year on 1 January is shown.
The profit for the year ended 31 December was ＄680 000.
During the year, the following took place:
- an issue of 500 000 ordinary shares of ＄1 each at a price of ＄2.50 each
- an upward revaluation of non-current assets of ＄250 000
- a transfer of ＄100 000 from retained earnings to general reserve
- a payment of ordinary dividends of ＄125 000.
What was the increase in the company’s equity and reserves for the financial year ended 31 December?
1 )
＄1 305 000
2 )
＄1 955 000
＄2 055 000
4 )
＄2 180 000
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