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13. 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 Group of answer choices P332,000 P311,000 P360,000 P320,000

13. 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 Group of answer choices P332,000 P311,000 P360,000 P320,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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13.

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

Group of answer choices
P332,000
P311,000
P360,000
P320,000
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