The Details Below Were Extracted from the Accounting Records of Great

question 7

Multiple Choice

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation) . $\begin{array}{ll}&\$\\40000 \$ 1 \text { preference shares fully paid } & 40000 \\ 120000 \$ 1 \text { ordinary shares paid to } 50 \text { cents } & \underline{60000} \\ & \underline{100000}\\\\ \text { Cash available (after payment of all creditors) }&10000\end{array}$

Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.
For preference shareholders, what is the amount of the actual refund or call?

• A) A refund of $17 500
• B) A call of $17 500
• C) A refund of $10 000
• D) A call of $22 500

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Definitions:

Product Rule

The rule for combining the probabilities of independent events by multiplying their individual probabilities. Compare with sum rule.

Bb Genotype

Represents a heterozygous genetic makeup, having one dominant allele (B) and one recessive allele (b) for a particular gene.

Two-Point Test Cross

A genetic cross performed to determine the linkage between two genes by crossing a homozygous recessive individual with a heterozygous individual for those two genes.

Alleles

Different forms of a gene that can exist at a specific locus on a chromosome, contributing to genetic variation within a population.