QUESTION 7

1. The net profit of a company for the year ended 31 December 2020 amounted to R1 680 000, and the profit before tax amounted to R2 300 000. The property of the company was revalued from R2 100 000 to R2 400 000 on 30 December 2020.

   Refer to the following statement of changes in equity for the year ended 31 December 2020, and select the amounts that correspond with the letters A and B:

   	Retained income	Revaluation reserve	Total
   Total comprehensive income	A	B

   		B R2 400 000
   		A R2 400 000
   		B R1 680 000
   		A R2 300 000
   		B R300 000
   		B R2 300 000
   		A R620 000
   		A R1 680 000