A company has a balance on share premium account of $50,000 and on retained earnings of $75,000. Issued share capital is 400,000 of 25c shares. The company decides to make a bonus issue of 1 for 1. What are the closing balances on share premium and retained earnings.
A、Share premium retained earnings $25,000 Nil
B、Share premium retained earnings $10,000 $15,000
C、Share premium retained earnings Nil $25,000
D、Share premium retained earnings Nil $(275,000)