Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate property located in Makati. The current fair value of the real property is at P3,900,000 while Cory Company shares are currently selling in the public market. The shares of Cory are highly speculative and that it has been trading in the market at a 52 week low of P12 to a against a 52 week high of P55. It is currently quoted at P46. By what amount the Share Premium account of Cory Company would increase as a result of the issuance of those shares?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in
lieu of a real estate property located in Makati. The current fair value of the
real property is at P3,900,000 while Cory Company shares are currently selling
in the public market. The shares of Cory are highly speculative and that it has
been trading in the market at a 52 week low of P12 to a against a 52 week high
of P55. It is currently quoted at P46. By what amount the Share Premium
account of Cory Company would increase as a result of the issuance of those
shares?
Transcribed Image Text:Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate property located in Makati. The current fair value of the real property is at P3,900,000 while Cory Company shares are currently selling in the public market. The shares of Cory are highly speculative and that it has been trading in the market at a 52 week low of P12 to a against a 52 week high of P55. It is currently quoted at P46. By what amount the Share Premium account of Cory Company would increase as a result of the issuance of those shares?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Corporate Distributions and Adjustments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education