R) Reasoning: Since share premium is not a trading profit, it is not distributed to shareholders.
A. Both (A. and (R) are true but (R) is not correct explanation to (A).
B. (A) is false but (R) is correct.
C. Both (A) and (R) are true and (R) is correct explanation of (A).
D. (A) is correct but (R) is false.
Answer:C
R) Reasoning: Since share premium is not a trading profit, it is not distributed to shareholders.
A. Both (A. and (R) are true but (R) is not correct explanation to (A). B. (A) is false but (R) is correct. C. Both (A) and (R) are true and (R) is correct explanation of (A). D. (A) is correct but (R) is false.