During the financial year, Company XYZ completed various transactions that affected its equity. The company reported the following movements in its equity accounts: Issued common shares for $100,000. Paid dividends totaling $20,000. Reported net income of $50,000. Based on this information, what would be the total change in equity reported on the Statement of Changes in Equity for the year?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Change in Equity Calculation

Easy Financial Statements Statement Of Changes In Equity

During the financial year, Company XYZ completed various transactions that affected its equity. The company reported the following movements in its equity accounts:

Issued common shares for $100,000.
Paid dividends totaling $20,000.
Reported net income of $50,000.

Based on this information, what would be the total change in equity reported on the Statement of Changes in Equity for the year?

Increase of $30,000

Increase of $100,000

Increase of $130,000

Hint

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