MULTIPLE CHOICE Choose the one serralve Phe question Enter your answers MCQ T und point and show Canada Corporation was organed ordinary shares value. During 2020. Canada sued 40.000 shares per share, purchased 4,000 treasury shares 1. 2000, with authorized capital c 1413 per share, and sid shares at 14 per share What is the amount of total share premium 20207 eo 4,000 600,000 4,000 Canada Corp. has 5,000 shares of 7%, e100 per value, cumulative preference shares and 50,000 ordinary shares with a et par value outstanding at December 31, 2020. the board of directors declares a 30,000 dividend, the a preference shareholders will receive 1/100 of what the ordinary shareholders wil receive b preference shareholders will receive the entire 30,000. 30,000 will be held as restricted retained earnings and paid out at some future date. d preference shareholders will receive 15,000 and the ordinary shareholders will receive 15,000. 3. A Lawyer performed legal services for Canada Corp. Due to a cash shortage, an agreement was reached whereby Canada Corp. would pay the Lawyer a legal fee of approximately $20,000 by issuing 5,000 ordinary shares (par $1). The shares trade on a daily basis and the market price of the shares on the day the debt was settled is $3 per share. Given this information, the journal entry for Canada Corp. to record this transaction is Legal Expense Share Capital-Ordinary b. Legal Expense Share Capital-Ordinary C. Legal Expense Share Capital-Ordinary Share Premium-Ordinary (d Legal Expense Share Capital-Ordinary Share Premium-Ordinary 15,000 15,000 20,000 20,000 20,000 5,000 15.000 15,000 5,000 10.000 Share dividends and share splits have the following effects on retained earnings Share Splits Share Dividends a Increase B No change a Decrease d. No change No change Decrease Decrease No change 3