Nixon Company SAOG declared a 3 for 6 bonus issue. The following is the abstract of SOFP before the bonus issue. Share capital consisting of ordinary shares of RO 0.500 each, RO 400,000. Share Premium Account RO 100,000. Revaluation Reserve RO 150,000. General Reserve RO 80,000. Retained Profits RO 500,000. The Companys policy for the purpose of accounting for bonus issue is not to use revaluation reserve whereas retained profits should only be used if other reserves are exhausted. What amount to be used from retained earnings for the right issue?

a.

RO 280,000

b.

RO 180,000

c.

RO 100,000

d.

RO 200,000