Lerner Company Had the Following Transactions in 2013, Its First

Multiple Choice

Lerner Company had the following transactions in 2013, its first year of operations. • Issued 20 000 ordinary shares. Shares were issued at $14.00 per share.
• Issued 1 000 preference shares at $100 each.
• Earned net profit of $35 000.
At the end of 2013, what is the total amount of Shareholders' equity?

A) $415 000
B) $380 000
C) $120 000
D) $260 000