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Melon declared an interim dividend of $1,800,000 out of the profit of $20 million for the year of 2014. The total interim dividend of $1,800,000 declared was deducted from the profit for the year. The net figure after the interim dividend was reported as "profit available for distribution" in the statement of profit or loss and other comprehensive income. Rocky wondered if the presentation of total interim dividend of $1,800,000 declared in the statement of profit or loss and other comprehensive income was correct.
Advise Rocky on the appropriate accounting treatment for the above activities. Discuss your viewpoints with reasons based on relevant accounting standards.
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simons company leased a machine from a recognized machine dealer machine guarantee limited. the dealer acquired the
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