Determine the amount received on application and allotment?

Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each.

A. #224,950
B. #225,000
C. #324,950
D. #325,000

Correct Answer:

Option B – #225,000