At the beginning of the current year, SCARLET Company's issued and outstanding shares total 100,000 shares of P10 par value, Share Premium of P400,000 and Retained Earnings of P360,000. The following transactions occurred during the year: January 10 Sold 40,000 shares at P15 per share March 27 Purchased 5,000 treasury shares at a cost of P12 per share. October 31 Issued P5,000,000 convertible bonds at 120.The bonds are quoted at 98 without the conversion feature. November 10 Declared a 2 for 1 split when the market value of the share was P16. December 15 Sold 20,000 shares at P10 per share. December 31 Net income for the year was P550,000

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