Redeemable preference shares of Rs. 1,00,000 are redeemed at a premium of 5% for which fresh equity shares of Rs. 40,000 are issued at par. What amount should be transferred to Capital Redemption Reserve account:
A. Rs. 1,05,000
B. Rs. 60,000
C. Rs. 40,000
D. Rs. 0
Answer: Option B
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