I got it right but am just wondering something I was hoping I could get help with: So RI = Et - (r x Bt-1) so RI = 975 - (0.12x8125) = 0 But the book value used is end of period. According to the equation shouldn’t you have to use last year’s closing book value?
yes. gay question. move on
so what you gonna do in the exam if you given both years balance sheets? This needs to be resolved, can’t just move on…