Reference no: EM132576795
The details below were extracted from the accounting records of Angelina Ltd (a company in the process of liquidation).
40 000 $1 preference shares fully paid $ 40 000
120 000 $1 ordinary shares paid to 50 cents $ 60 000
$ 100 000
Cash available (after payment of all creditors) $10 000
Assume that the constitution of Angelina Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.
Question 1: For preference shareholders, what is the amount of the actual refund or call?
Group of answer choices
Option 1: A call of $23 333
Option 2: A call of $22 500
Option 3: A refund of $10 000
Option 4: A refund of $17 500