[Toshni]

I think the answer is A. $120 000

As the initial share capital is $75 000 ($0.5 X 150000)

after the right issue of 1 ordinary share for every 3 already held, i.e 50000 shares at $1.20. This will increase the share capital by $25 000 (50000 X $0.5) and share premium by $35000 (50000X$0.7($1.20-$0.5))

after the bonus issue of 1 share for every 5 held,i.e 40000 at $0.50. This will further increase the share capital by $20000

When adding,we get the Balance share capital as $ 120 000 ($75000+$25000+$20000)

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