Bates Ltd Has 6,000,000 Ordinary Shares on Issue at the Beginning

question 13

Multiple Choice

Bates Ltd has 6,000,000 ordinary shares on issue at the beginning of the year,1 July 2003.These shares were issued at $4.00 each and have a current market value of $6.25.On 1 February 2004,Bates Ltd bought back 300,000 ordinary shares originally issued at $4.50 for $5.60 each.On 1 May 2004,1,000,000 fully paid-up shares were issued at the current market value.What is the weighted average number of shares calculated in accordance with AASB 1027?

• A) 6,059,452
• B) 6,196,552
• C) 6,041,096
• D) 6,627,397
• E) None of the given answers.

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Definitions:

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Individuals or entities that allocate capital with the expectation of receiving financial returns, commonly through the purchase of stocks, bonds, or real estate.

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