ACCA FR · Chapter 14 · Question 8 of 15
Sitatunga Co's retained earnings were $800k at the start of the year and $950k at the end. Profit for the year was $300k, and $20k of excess depreciation was transferred from the revaluation surplus to retained earnings. What equity dividends were paid in the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $170k
Explanation
Retained earnings working: opening 800 + profit 300 + transfer from revaluation surplus 20 - dividends X = closing 950. X = 800 + 300 + 20 - 950 = $170k.
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