Find the value of authorized share capital?

Given:

N6 000 10% preference shares of N0.50 each
N6 000 ordinary shares of N1 each
Capital reserves N2 700 000
Long-term liabilities N4 000 000

A. 13 000 000
B. 12 000 000
C. 9 000 000
D. 15 700 000

Correct Answer:

Option C – 9 000 000

Explanation

6000 x 0.50 = 3000
6000 x 1 = 6000

3000 + 6000 = 9000