Brighttime Business Centre Ltd. reported the following accounts and their balances as at January 1, 2015, the beginning of the current fiscal year:

The company reported the following results for the year:
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,000
Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000
Instructions
1. Journalize the closing entries at year-end.
2. Prepare a statement of changes in equity for the year ended December 31, 2015.
Why would a company declare dividends in a year it recorded a net loss?