New York Corporation Has the Following Shareholders' Equity on December

question 99

Multiple Choice

New York 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 one preferred share is convertible into 10 common shares, how many common shares are issued when 500 preferred shares are converted?

• A) 500
• B) 50
• C) 5,000
• D) 5

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Definitions:

Gold Rope

Generally refers to a type of jewelry chain made of gold, characterized by links that form a spiral or twisted pattern.

Centimeters

A measurement of distance in the metric system that is equivalent to 0.01 meters.

Inches

A unit of measurement in the imperial and United States customary systems, equivalent to 1/12 of a foot.

Kilometers

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances between geographical locations.