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James Corporation Issued 1,000 Preference Shares with a Par Value

Question 126

Multiple Choice

James Corporation issued 1,000 preference shares with a par value of CHF100 for CHF205 per share.This transaction will


A) increase total equity by CHF205,000.
B) increase Share Premium-Preference by CHF205,000.
C) decrease Retained Earnings by CHF105,000.
D) increase Share Capital-Ordinary by CHF105,000.

Correct Answer:

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