Net impact of transactions on total equity

Steps:

• Transfer $50,000 from retained earnings to general reserve: no net change in total equity (internal reallocation within equity accounts).
• Issue 200,000 ordinary shares of $1 at$2.50: increases total equity by $500,000 (proceeds received = 200,000 ×$2.50).
• Revalue non-current assets to $$150,000 (new carrying amount added to revaluation reserve).

Why D is correct:

• Total equity rises by $750,000 per the accounting equation (assets = equity + liabilities), summing share proceeds, revalued asset amount, and dividend allocation from profits (IAS 1 presentation).

Why the others are wrong:

• A $450,000: Incorrectly nets revaluation surplus ($25,000) against dividends as a reduction.

Final answer: D