On 1 February 2014 the directors of the company made a rights issue of shares which was fully subscribed. The issue was of three shares for every eight shares in issue at this date at a price of $1.20 per share. What was the balance of the share premium account after the share issue?

A. $60,000

B. $75,000

C. $97,500

D. $150,000

 

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Issued shares: 400 000 shares of $0.50 each 200 000 Share premium 45 000 %24