How much is to be paid for application?

Given:

Applications were invited by the directors of Abiodun PLC for 500,000 ordinary shares of #1:00 each at #1:10 per share payable as follows;
On application 46k
On allotment 20k
1st Call 15k
2nd Call 19k

A. #230,000
B. #280,000
C. #500,000
D. #550,000

Correct Answer:

Option A – #230,000

Explanation

46k x 500,000 = 23,000,000 k

23000000 / 100 = 230,000