Net Change in Equity and Reserves Steps:

• Share issue adds $1,250,000 (50,000 ×$25) to equity via capital and premium.
• Profit adds $80,000 to retained earnings.
• Revaluation adds $250,000 to revaluation reserve.
• Subtract dividend $125,000; transfer$100,000 to general reserve has no net effect.
• Total increase: $1,250,000 +$80,000 + $250,000 -$125,000 = $1,455,000.

Why C is correct:

• C equals $1,455,000, matching the accounting principle that equity increases by full share proceeds, profit, revaluation surplus, minus dividends (IAS 1 presentation).

Why the others are wrong:

• A: Excludes full share issue proceeds, understating by premium amount.
• B: Omits revaluation, ignoring unrealized gains in reserves.
• D: Treats transfer as additional increase, violating no-net-effect rule for internal reallocations.

Final answer: C