For the year 2019, a business reports $450,000 increase in Share capital - Ordinary, $5 par value, and $550,000 increase in Share Premium - Ordinary. $700,000 ordinary shares are issued for non-cash assets. What is the amount of cash received from the sale of ordinary shares? A. $300,000 B. $450,000 C. $550,000 D. $700,000 E. $1,000,000
For the year 2019, a business reports $450,000 increase in Share capital - Ordinary, $5 par value, and $550,000 increase in Share Premium - Ordinary. $700,000 ordinary shares are issued for non-cash assets. What is the amount of cash received from the sale of ordinary shares? A. $300,000 B. $450,000 C. $550,000 D. $700,000 E. $1,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![For the year 2019, a business reports $450,000 increase in Share capital - Ordinary,
$5 par value, and $550,000 increase in Share Premium - Ordinary. $700,000
ordinary shares are issued for non-cash assets. What is the amount of cash received
from the sale of ordinary shares?
A. $300,000
B. $450,000
C. $550,000
D. $700,000
E. $1,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff0ebf8d2-9b4e-4b89-9717-33c2ef34e3fe%2F73e1f964-3550-4532-9763-09b6dda823e0%2F1p9tvey_processed.png&w=3840&q=75)
Transcribed Image Text:For the year 2019, a business reports $450,000 increase in Share capital - Ordinary,
$5 par value, and $550,000 increase in Share Premium - Ordinary. $700,000
ordinary shares are issued for non-cash assets. What is the amount of cash received
from the sale of ordinary shares?
A. $300,000
B. $450,000
C. $550,000
D. $700,000
E. $1,000,000
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