Consider the following information regarding ABC Corporation's equity for the year ending December 31, 2023: Beginning Equity: $500,000 Net Income: $150,000 Dividends Paid: $40,000 Shares Issued: $100,000 Other Comprehensive Income: $30,000 Using this information, which of the following calculations accurately reflects the balance of total equity at year-end as reported in the Statement of Changes in Equity ?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Total Equity Calculation from Statement of Changes in Equity

Very Hard Financial Statements Statement Of Changes In Equity

Consider the following information regarding ABC Corporation's equity for the year ending December 31, 2023:

Beginning Equity: $500,000
Net Income: $150,000
Dividends Paid: $40,000
Shares Issued: $100,000
Other Comprehensive Income: $30,000

Using this information, which of the following calculations accurately reflects the balance of total equity at year-end as reported in the Statement of Changes in Equity?

Total Equity = Beginning Equity + Net Income - Dividends + Shares Issued + Other Comprehensive Income = $500,000 + $150,000 - $40,000 + $100,000 + $30,000 = $740,000

Total Equity = Beginning Equity + Net Income - Dividends + Other Comprehensive Income = $500,000 + $150,000 - $40,000 + $30,000 = $640,000

Total Equity = Beginning Equity + Net Income + Shares Issued - Dividends + Other Comprehensive Income = $500,000 + $150,000 + $100,000 - $40,000 + $30,000 = $740,000

Hint

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