1. On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? a. ₱ 2,000,000 b. ₱ - 0 - c. ₱ 1,000,000 d. ₱ 500,000

1. On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? a. ₱ 2,000,000 b. ₱ - 0 - c. ₱ 1,000,000 d. ₱ 500,000

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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1. On July 1, 2021, APPLE's Company board of directors declared a 10% share dividend. The market price of Apple's 400,000 outstanding ordinary shares, ₱50 par value, was ₱80 per share on the date of declaration. The share dividend was distributed on September 1, 2021, when the market price of shares was ₱100 per share. What amount should be charged to retained earnings as a result of the share dividend? ₱ 3,200,000 ₱ 4,000,000 ₱ 0 ₱ 2,000,000
On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? ₱ 500,000 ₱ 2,000,000 ₱ - 0 - ₱ 1,000,000
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