Question
Company AAA closes fiscal year 1 with a profit of 530,000. As of 12/31 in year 1, its Equity includes the following: Capital 6,000,000, Legal
Company AAA closes fiscal year 1 with a profit of 530,000. As of 12/31 in year 1, its Equity includes the following: Capital 6,000,000, Legal reserves 1,000,000, Voluntary reserves 3,500,000 and Statutory reserves 800,000. When the time comes to distribute year 1s profits, the company decides that it does not want to distribute any dividend; rather, it wants to dedicate profits to its voluntary reserves so long as this complies with Spanish legal regulation. In the entry corresponding to the profit appropriation of year 1, how much will the company allocate to its legal reserves? Dont use decimals or coma separator
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