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Assume That for Company X,the Opening Residual Equity Was $30

Question 22

Multiple Choice

Assume that for Company X,the opening residual equity was $30 000 000 and the price index increased from 150 to 175.The capital maintenance adjustment would be calculated and classified as:


A) Calculation: $30 000 000 × 25/150 = $5 000 000 and classified as an income
B) Calculation: $30 000 000 × 25/175 = $4 285 714 and classified as an income
C) Calculation: $30 000 000 × 25/150 = $5 000 000 and classified as an expense
D) Calculation: $30 000 000 × 25/175 = $4 285 714 and classified as an expense

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