Lerner Company Had the Following Transactions in 2016,its First Year

question 14

Multiple Choice

Lerner Company had the following transactions in 2016,its first year of operations.
? Issued 25,000 ordinary shares.The issue price of the shares was $18.00 per share.
? Issued 1200 preference shares for $200 per share.
? Earned net profit of $36,000.
? Paid no dividends.
At the end of 2016,what is the total amount of shareholders' equity?

• A)$290,000
• B)$690,000
• C)$400,000
• D)$726,000

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