Company AAA closes fiscal year 1 with a profit of €530,000. As of 12/31 in year...

Company AAA closes fiscal year 1 with a profit of €530,000. As of 12/31 in year 1, its Equity includes the following: Capital €6,000,000, Legal reserves €1,000,000, Voluntary reserves €3,500,000 and Statutory reserves €800,000. When the time comes to distribute year 1’s profits, the company decides that it does not want to distribute any dividend; rather, it wants to dedicate profits to its voluntary reserves so long as this complies with Spanish legal regulation. In the entry corresponding to the profit appropriation of year 1, how much will the company allocate to its legal reserves? Don´t use decimals or coma separator

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ekkarill92 answered 2 years ago

Kevin Company issues bonds on 1/1/20. Suppose, for Kevin Company (fiscal year end of 12/31), the...

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