The shareholders’ equity section of the M&M Co. as of December 31, 2019 consisted of the following: Share capital (P30 par) P3,000,000; Share premium P1,900,000; Accumulated profits and losses (P2,000,000). On January 1, 2020 M&M Co. put into effect a shareholder approved quasi reorganization by reducing the par value of the shares to P5 and eliminating the deficit against share premium. What amount should M&M Co. report as share premium immediately after the quasi reorganization? *

The shareholders’ equity section of the M&M Co. as of December 31, 2019 consisted of the following: Share capital (P30 par) P3,000,000; Share premium P1,900,000; Accumulated profits and losses (P2,000,000). On January 1, 2020 M&M Co. put into effect a shareholder approved quasi reorganization by reducing the par value of the shares to P5 and eliminating the deficit against share premium. What amount should M&M Co. report as share premium immediately after the quasi reorganization? *

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

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