The corporation have the following balance before all preference shares are called for redemption : Ordinary Shares 1,000,000 par value 100 Share Premium on ordinary shares 500,000 , Redeemable Preference share 2,000,000 par value 200.00 Share premium on preference shares 200,000.00. retained earnings 500,000.00. If all preference shares are redeemed at 180 per share which statement is true? *

A credit to retained earnings amounting to 200,000

A credit to premium on ordinary shares amounting to 200,000

Gain on redemption amounting to 200,000

A credit of 200,000 to share premium preference shares