Question: Exercise 2.5 SHARE ISSUE, OPTIONS On 30 June 2015, the equity accounts of Boron Ltd consisted of: 175 000 A ordinary shares, issued

Exercise 2.5 ★ ★ SHARE ISSUE, OPTIONS On 30 June 2015, the equity accounts of Boron Ltd consisted of: 175 000 ‘A’ ordinary shares, issued at $2.50 each, fully paid 50 000 6% cumulative preference shares, issued at $3 and paid to $2 Options (20 000 at 56c each) Accumulated losses $437 500 100 000 11 200 (6 250)

As the company had incurred a loss for the year ended 30 June 2015, no dividends were declared for that year. The options were exercisable between 1 March 2016 and 30 April 2016. Each option allowed the holder to buy one ‘A’ ordinary share for $4.50. The following transactions and events occurred during the year ended 30 June 2016:

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