A company redeems 60 000 $1 redeemable preference shares at a premium of $0.25 per share. The
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A company redeems 60 000 $1 redeemable preference shares at a premium of $0.25 per share. The shares were originally issued at par. No new issue of shares was made to finance the redemption.
What effect does the redemption have on the Profit and Loss Account and the Capital Redemption Reserve?
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A B ( D Profit and Loss Account TERA decrease by $60 000 decrease by $60 000 decrease by $75 000 decrease by $75 000 Capital Redemption Reserve increase by $60 000 increase by $75 000 increase by $60 000 increase by $75 000 Linde
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