Part C: Statement of Changes in Equity (5 Marks)

The equity section of the statement of financial position of Comet Ltd at 30 June 2016 discloses

2016

2015

Share capital

$3 700 000

$3 600 000

General reserve

500 000

100 000

Revaluation surplus

800 000

240 000

Retained earnings

500 000

680 000

$5 500 000

$4 620 000

Additional information

(a)Comet Ltd issued 100 000 shares at $1 each during the year.

(b)Profit for the year was $300 000.

(c)Dividends paid during the year were $80 000.

(d)A transfer of $400 000 was made from retained earnings to general reserve during the year.

(e)Land was revalued by $800 000 during the year.

(f)Tax rate is 30%.