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

---

Definitions:

Concrete Criteria

Specific, clear, and measurable standards used to evaluate or assess something.

Structured Interview

A systematic interviewing method where all candidates are asked the same predetermined questions in the same order to ensure consistency in data collection.

Ethnic Backgrounds

The cultural, national, or racial groups that individuals identify with or belong to based on shared ancestry, traditions, language, or history.

Minnesota Multiphasic Personality Inventory

A widely used psychological test that assesses personality traits and psychopathology by evaluating responses to a series of statements.