China Corporation Has the Following Shareholders' Equity on December 31

question 39

Multiple Choice

China Corporation has the following shareholders' equity on December 31, 2021: Shareholders' equity
Share capital
$ 10 convertible preferred shares,
10,000 shares authorized, 5,000 shares issued $ 0,570,000
Common shares, no par value,
200,000 shares authorized, 90,000 shares issued 1,800,000
Total share capital 2,370,000
Retained earnings 450,000
Total shareholders' equity $ 2,820,000
If 500 preferred shares are converted into common shares what is the dollar value of the common shares issued?

• A) $ 50,000
• B) $ 57,000
• C) $ 10,000
• D) $ 9,000

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Definitions:

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