On February 1,2020, Neversaynever Corporation declared a bonus issue entitling its shareholders to one additional share for each share held, distributable on April 1,2020. The market value of the company’s share was P10 on Feb. 1, and P 12 on April 1. The par value was P5 per share. The company has 600,000 ordinary shares outstanding. The amount of Retained Earnings capitalized for the bonus issue amounts to- a. P7,200,000 b. P6,000,000 c. P3,000,000 d. P-0-

On February 1,2020, Neversaynever Corporation declared a bonus issue entitling its shareholders to one additional share for each share held, distributable on April 1,2020. The market value of the company’s share was P10 on Feb. 1, and P 12 on April 1. The par value was P5 per share. The company has 600,000 ordinary shares outstanding. The amount of Retained Earnings capitalized for the bonus issue amounts to- a. P7,200,000 b. P6,000,000 c. P3,000,000 d. P-0-

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 4MC

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