Reference no: EM132737780

VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization:

(a) 40,000 ordinary shares, no par value, stated value ?40 per share

(b) 10,000 shares of 5% cumulative preference share, par value ?10 per share.

Problem 1: During 2020, Violet issued 24,000 ordinary shares for a total consideration of ?1,200,000 and 6,000 preference share at ?16 per share. In addition, on December 19, 2020, subscriptions for 2,000 preference shares were taken at a purchase price of ?17. These subscribed shares were paid for on January 2, 2021. What should Violet report as total contributed capital in its December 31, 2020 statement of financial position?

A) ? 1,330,000
B) ? 1,262,000
C) ? 1,040,000
D) ? 1,294,000