ABC Inc Commenced Operations on January 1, 2012

question 42

Essay

ABC Inc commenced operations on January 1, 2012. The following account balances were taken from the company's December 31^st Balance Sheet, which reflected amounts resulting from the company's first year of operations:
Common Shares (no par, 100,000 shares issued and outstanding) $500,000
Retained Earnings $150,000
Accumulated Other Comprehensive Income (Loss) $45,000*
* Resulting from an unrealized gain due to the appreciation in market value of some of its Available-for-Sale Financial Assets. This amount is net of tax, and was subsequently realized during 2013 when the assets were sold. Thus, it is included in the company's 2013 Net Income.
During 2013, ABC Inc. had a Net Income figure of $120,000. At the end of 2013, the company reported a Foreign Currency Translation loss of $60,000 (net of tax).
The company is subject to an effective tax rate of 40%.
Given the above information, prepare the Shareholder Equity section of ABC Inc's December 31^st, 2013 balance sheet.

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Definitions:

Racial Categorization

The process of classifying people into groups based on physical characteristics, often leading to societal implications and stereotypes.

Homogenizing Headings

Refers to the process of making headings consistent in style or format across a document or group of documents.

Dominant

Holding a position of power, influence, or control in a particular society, culture, or group.

Whiteness

A socio-political concept referring to the social, economic, and political advantages that come with being identified as white in many societies.