30 The following dividend transactions were summarized by Hyatt Company during 2022: Share dividend Hyatt Company has 600,000 shares of P20 par value ordinary shares outstanding. In declaring and distributing 10% share dividend, Hyatt Company issued only 55,000 new shares, the other share dividend was not issued because some investors did not own Hyatt Company’s shares in even multiples of ten. To these shareholders, Hyatt Company issued fractional warrants. Hyatt Company’s ordinary shares were selling at P30 per share when the share dividends were declared. Ultimately, only 90% of the fractional share warrants were finally turned-in in exchange of full shares. Property Dividend On December 1, Hyatt Company declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on March 31 of the following year. This was acquired at P1,000,000 on December 1, 2021. The property had fair market value P1,110,000 on December 1, 2022. On December 31, 2022 the value of the property declined to P850,000. How much is the total amount charged to retained earnings as a result of dividend declaration in 2022?
30
The following dividend transactions were summarized by Hyatt Company during 2022:
Share dividend
Hyatt Company has 600,000 shares of P20 par value ordinary shares outstanding. In declaring and distributing 10% share dividend, Hyatt Company issued only 55,000 new shares, the other share dividend was not issued because some investors did not own Hyatt Company’s shares in even multiples of ten. To these shareholders, Hyatt Company issued fractional warrants. Hyatt Company’s ordinary shares were selling at P30 per share when the share dividends were declared. Ultimately, only 90% of the fractional share warrants were finally turned-in in exchange of full shares.
Property Dividend
On December 1, Hyatt Company declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on March 31 of the following year. This was acquired at P1,000,000 on December 1, 2021. The property had fair market value P1,110,000 on December 1, 2022. On December 31, 2022 the value of the property declined to P850,000.
How much is the total amount charged to
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