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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
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
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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
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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