At December 31, 2020, BFAR Corp. had 20,000 treasury shares that had been re-acquired in 2020 at P14 per share. These shares have a par value of P8 per share. In May 2021, the company re-issued 6,000 of these treasury shares at P10 per share. On December 31, 2021, how much should be the amount of appropriation of accumulated profits from the above transactions, under the cost method?

At December 31, 2020, BFAR Corp. had 20,000 treasury shares that had been re-acquired in 2020 at P14 per share. These shares have a par value of P8 per share. In May 2021, the company re-issued 6,000 of these treasury shares at P10 per share. On December 31, 2021, how much should be the amount of appropriation of accumulated profits from the above transactions, under the cost method?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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