Use the Information Below to Answer the Following Questions

question 9

Multiple Choice

Use the information below to answer the following questions:
An issue of 50 000 shares at $3 required $2.20 per share to be paid at the time of application. On allotment, another $0.30 was due and a further $0.50 when determined by the board of directors. The application money in respect of the 50 000 shares was received on 8 July. On 26 July, the shares were issued with the amount due on allotment received on 15 August. The remaining $0.50 was called up on 20 September and received on 10 October.
-What was the balance of share capital at 11 October?

• A) $25 000
• B) $125 000
• C) $150 000
• D) $110 000.

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Definitions:

Net Present Value

A calculation used to assess the profitability of an investment, considering the present value of its future cash flows minus the initial investment.

Payback Period

The duration necessary to regain the investment's cost.

Salvage Value

The forecasted residual worth of an asset upon reaching the end of its utility life.

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its useful life.