An entity has ordinary shares with a P10 par value and fair market value of P15. The entity exchanges 1,000 shares of this ordinary share for a rea estate property. 1. The land will be debited for P10,000 2. The ordinary shares account will be credited for P10,000 and share premium will be recorded. A 1 only B) 2 only both 1 and 2 D) neither 1 and 2
An entity has ordinary shares with a P10 par value and fair market value of P15. The entity exchanges 1,000 shares of this ordinary share for a rea estate property. 1. The land will be debited for P10,000 2. The ordinary shares account will be credited for P10,000 and share premium will be recorded. A 1 only B) 2 only both 1 and 2 D) neither 1 and 2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An entity has ordinary shares with a P10 par value and fair
market value of P15. The entity exchanges 1,000 shares of
this ordinary share for a rea estate property.
1. The land will be debited for P10,000
2. The ordinary shares account will be credited for
P10,000 and share premium will be recorded.
A) 1 only
B 2 only
C
both 1 and 2
D
neither 1 and 2
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