XYZ Holdings Ltd. has issued a Statement of Changes in Equity for the year ending December 31, 2023. During this year, the company reported the following changes in its equity: Retained earnings increased by $150,000 due to net income. Dividends declared and paid were $50,000. The company issued 10,000 shares at $20 each, raising $200,000 in share capital. Other comprehensive income attributed to unrealized gains from the revaluation of available-for-sale securities amounted to $30,000. Considering these changes, what is the total equity increase that should be reflected in the Statement of Changes in Equity for the year?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Determining Total Equity Increase

Hard Financial Statements Statement Of Changes In Equity

XYZ Holdings Ltd. has issued a Statement of Changes in Equity for the year ending December 31, 2023. During this year, the company reported the following changes in its equity:

Retained earnings increased by $150,000 due to net income.
Dividends declared and paid were $50,000.
The company issued 10,000 shares at $20 each, raising $200,000 in share capital.
Other comprehensive income attributed to unrealized gains from the revaluation of available-for-sale securities amounted to $30,000.

Considering these changes, what is the total equity increase that should be reflected in the Statement of Changes in Equity for the year?

Total equity increased by $330,000.

Total equity increased by $250,000.

Total equity increased by $200,000.

Hint

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