13. Large company agrees to pay £1,750,000 to take over small company. Large company’s shares have a market value of £1.75. The £1,750,0000 is paid by the issue of 1 million £1 shares.

What additional share capital will Large report?

A. £1,750,000

B. £1,000,000

C. £750,000

D. £0

Answer : B