ABC Corporation's performance during the last three years had not been favorable resulting to a deficit of P950,000 at December 31, 2020. The company, with the approval of the shareholders, decided to eliminate the deficit through quasi- reorganization which would be effected as follows: The company's 200,000, P20 par ordinary share capital originally issued at an average price of P22 would be reissued with par value of P15. Immediately after the quasi-reorganization, what would be the balance of share premium? * O P 450,000 O P 600,000 O P 1,000,000 O P 1,400,000
ABC Corporation's performance during the last three years had not been favorable resulting to a deficit of P950,000 at December 31, 2020. The company, with the approval of the shareholders, decided to eliminate the deficit through quasi- reorganization which would be effected as follows: The company's 200,000, P20 par ordinary share capital originally issued at an average price of P22 would be reissued with par value of P15. Immediately after the quasi-reorganization, what would be the balance of share premium? * O P 450,000 O P 600,000 O P 1,000,000 O P 1,400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Corporation's performance during the last three years had not been favorable resulting to
a deficit of P950,000 at December 31, 2020. The company, with the approval of the
shareholders, decided to eliminate the deficit through quasi- reorganization which would be
effected as follows: The company's 200,000, P20 par ordinary share capital originally issued at
an average price of P22 would be reissued with par value of P15. Immediately after the
quasi-reorganization, what would be the balance of share premium?*
O P 450,000
O P 600,000
O P 1,000,000
O P 1,400,000
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