CARAT CORP. has completed its current year financial statements which reveal, in part, the following information: *Profit for the year - P110,000 *Total Comprehensive Income - P130,000 *Other comprehensive income relates to the revaluation of land and buildings to fair value *Dividends paid - P35,000 *Opening equity balances - share capital P300,000, retained earnings P220,000, asset revalution surplus P60,000 *No more share capital was issued during the reporting period The total equity at the end of the current year is: Choices a. 695,000 b. 675,000 c. 655,000 d. 580,000

CARAT CORP. has completed its current year financial statements which reveal, in part, the following information: Profit for the year - P110,000 Total Comprehensive Income - P130,000 Other comprehensive income relates to the revaluation of land and buildings to fair value Dividends paid - P35,000 Opening equity balances - share capital P300,000, retained earnings P220,000, asset revalution surplus P60,000 No more share capital was issued during the reporting period The total equity at the end of the current year is: Choices a. 695,000 b. 675,000 c. 655,000 d. 580,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

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Question

CARAT CORP. has completed its current year financial statements which reveal, in part, the following information:

*Profit for the year - P110,000

*Total Comprehensive Income - P130,000

*Other comprehensive income relates to the revaluation of land and buildings to fair value

*Dividends paid - P35,000

*Opening equity balances - share capital P300,000, retained earnings P220,000, asset revalution surplus P60,000

*No more share capital was issued during the reporting period

The total equity at the end of the current year is:

Choices

a. 695,000

b. 675,000

c. 655,000

d. 580,000

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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