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Given: N6 000 10% preference shares of N0.50 each N6 000 ordinary shares of N1 ...

Given:
N6 000 10% preference shares of N0.50 each
N6 000 ordinary shares of N1 each
Capital reserves N2 700 000
Long-term liabilities N4 000 000
Find the value of authorized share capital?

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  • A 13 000 000
  • B 12 000 000
  • C 9 000 000
  • D 15 700 000
Correct Answer: Option C
Explanation:
6000 x 0.50 = 3000
6000 x 1 = 6000
3000 + 6000 = 9000

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