An Issue of 50 000 Shares at $3 Required $2

question 6

Multiple Choice

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:

Critical Value

A threshold value that defines the boundary or cut-off point beyond which an observed test statistic is considered statistically significant.

Type I Error

The error made when a true null hypothesis is incorrectly rejected.

Type II Error

The error that occurs when a false null hypothesis is not rejected, also known as a "false negative."

Probability

The degree to which something is likely to happen, quantified as a number between 0 (impossible) and 1 (certain).