Prior to 23 October 2027, the share capital account of Fallout Ltd had a balance of $50,000. This reflected their issued share capital, which consisted of 50,000 ordinary shares, issued at $1.00 and paid in full. On 23 October 2027, the directors announced a 1-for-5 non renounceable rights issue, with shares to issued under the scheme for $2.40 each, payable in full upon accepting the offer. Lone Wanderer Ltd agreed to underwrite half of the offer, in exchange for a fee of $1,000. If the holders of 15,500 ordinary shares exercise their rights, what will the balance of the share capital account be once the rights issue is complete? (Note: to be clear, we are looking for the dollar balance, NOT the number of outstanding shares) 71000 73000 69000 61000

Prior to 23 October 2027, the share capital account of Fallout Ltd had a balance of $50,000. This reflected their issued share capital, which consisted of 50,000 ordinary shares, issued at $1.00 and paid in full. On 23 October 2027, the directors announced a 1-for-5 non renounceable rights issue, with shares to issued under the scheme for $2.40 each, payable in full upon accepting the offer. Lone Wanderer Ltd agreed to underwrite half of the offer, in exchange for a fee of $1,000. If the holders of 15,500 ordinary shares exercise their rights, what will the balance of the share capital account be once the rights issue is complete? (Note: to be clear, we are looking for the dollar balance, NOT the number of outstanding shares) 71000 73000 69000 61000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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