Langer Ltd Is to Restructure Its Owners' Equity by Making

question 24

Multiple Choice

Langer Ltd is to restructure its owners' equity by making its issued shares paid up to $0.50.It will do this by transferring half the amount from the asset revaluation reserve and the remainder from retained profits.Langer Ltd currently has 1 000 000 shares on issue paid up to $0.25.The asset revaluation reserve balance is $50 000.What is the minimum amount by which Langer Ltd must revalue upwards its non-current assets so that it can effect this transfer?

• A)$75 000
• B)$125 000
• C)$200 000
• D)$250 000

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Definitions:

International Businesses

Companies that conduct commerce across national borders, engaging in international trade or investment.

Privatization

The transfer of ownership and management of enterprises from the public sector (government) to private individuals or organizations.

Command Economy

An economic system where the government has primary control over the production and distribution of goods and services.

Market Economy

An economic system where the prices of goods and services are determined in a free price system, primarily through supply and demand.