Cost of the asset$100,000
Life of the asset 5 years
Depreciation rate20%
Capital cost allowance rate 50%
Residual value of the asset nil
Income tax rate 50%
-What is included in the share capital segment of the statement of changes in equity?
A) the change in property revaluation
B) the dividend reinvestment and share purchase plan
C) retained earnings
D) the dividends paid to shareholders

Question

Cost of the asset$100,000 
Life of the asset 5 years 
Depreciation rate20% 
Capital cost allowance rate 50% 
Residual value of the asset nil 
Income tax rate 50%
-What is included in the share capital segment of the statement of changes in equity?
A) the change in property revaluation
B) the dividend reinvestment and share purchase plan
C) retained earnings
D) the dividends paid to shareholders

Quizplus · Accepted Answer

The share capital segment of the statement of changes in equity includes transactions that directly affect the share capital, such as the dividend reinvestment and share purchase plan. This is because these plans often involve issuing new shares or buying back existing shares, directly impacting the company's share capital.

Cost of the Asset$100,000