Impact of Transactions on Statement of Changes in Equity

Very Hard Financial Statements Statement Of Changes In Equity

During the fiscal year ending December 31, 2023, Alpha Corp had the following transactions affecting its equity:

A net profit of $1,200,000 was recorded.
The company declared dividends totaling $300,000.
Alpha Corp issued 5,000 new shares at $20 per share, leading to an increase in share capital.
The company repurchased 1,000 shares at $25 each, which reduced the treasury stock.

Given these transactions, which of the following options accurately reflects the total effect on the equity section of Alpha Corp's Statement of Changes in Equity for the fiscal year 2023?

Total increase in equity of $1,150,000 including retained earnings and share capital adjustments.

Total increase in equity of $1,050,000 after accounting for profits, dividends, and share repurchases.

Total increase in equity of $900,000 adjusting for net profit, dividends declared, and shares issued.

Hint

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