The Bonus Issue of Shares Has the Following Impact on the Equity

question 16

Multiple Choice

The bonus issue of shares has the following impact on the equity of a company

• A)total equity increases
• B)total equity decreases
• C)one equity account increases and another equity account decreases by an equal amount
• D)only the amount of issued share capital changes.

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Definitions:

Taxable Income

The portion of one's income that is subject to taxes, determined by subtracting allowable deductions and exemptions from the gross income.

Taxable Income

The amount of an individual's or corporation's income that is subject to taxes, after deductions and exemptions.

Standard Deduction

A fixed amount that reduces the income on which you are taxed, which the IRS allows taxpayers to subtract from their gross income to reduce taxable income.

Joint Return

A tax return filed jointly by a married couple, combining their incomes, deductions, and credits.