The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: • Professional fees of P40,000. • Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be A. P332,000 B. P320.000 C. P360,000 D. P311,000
The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: • Professional fees of P40,000. • Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be A. P332,000 B. P320.000 C. P360,000 D. P311,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue:
• Professional fees of P40,000.
• Internal management time in managing the process of P30,000.
These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%.
In accordance with PAS32 Financial instruments: presentation, the increase in equity in the
A. P332,000 B. P320.000 C. P360,000 D. P311,000
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