A company’s statement of financial position at the start of the financial year on 1 January is given below: issued share capital $2\,000\,000 share premium $500\,000 revaluation reserve $300\,000 general reserve $150\,000 retained earnings $1\,600\,000 The profit for the year ended 31 December amounted to $680\,000. Over the course of the year, these transactions occurred: • $500\,000 of ordinary shares of $1 each were issued at $2.50 each • non-current assets were revalued upwards by $250\,000 • $100\,000 was transferred from retained earnings to general reserve • ordinary dividends of $125\,000 were paid By how much did the company’s equity and reserves increase over the financial year ended 31 December?
- A$1\,305\,000
- B$1\,955\,000
- C$2\,055\,000
- D$2\,180\,000