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How to do a , b and c? AE4.5 (a) Frothy Ltd started trading in 2013 when it made a loss for the year of

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How to do a , b and c?

AE4.5 (a) Frothy Ltd started trading in 2013 when it made a loss for the year of $100,000. In 2014, it made a profit of $50,000. What is the maximum dividend that it can pay at the end of 2014? (b) Bubbly Ltd started trading in 2013 and made a profit for the year of $100,000. In 2014, it made a loss of $60,000. What is the maximum dividend the company could pay at the end of 2014, assuming that no dividends were paid in 2013? (c) As well as the results given in (b), above, you find that Bubbly Ltd sold a plot of land which had cost $100,000 for $150,000, and had revalued another similar plot which had cost $100,000 to $150,000. What is the maximum dividend that the company could pay at the end of 2014

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