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WASSCE
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The authorized capital of City Entertainment Company is made up of 200,000 2 1/2 %preference shares of Le 60 each and 300,000 ordinary shares of Le 20, 80% of the ordinary shares have been insured at Le 30 each and fully paid. The directors decided to pay preference dividend and recommended ordinary dividend of Le 0.10 per share
What is the amount of the share premium?
A.
Le 9,000,000
B.
Le 5,000,000
C.
Le 3,000,000
D.
Le 2, 400,000
Answer: D
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