Andrea Company reported the following shareholder's equity at the beginning of 2017: Preference share capital, P100 par P 10,000,000 Ordinary share capital, P10 par P 5,000,000 Share premium - Preference P 2,500,000 Share premium - Ordinary P 1,000,000 Retained earnings P 1,500,000 During 2017, the followong transactions were completed: - Retired 10,000 preference shares at P110 per share. These shares were originally issued for P120 per share. - Purchase of 25,000 ordinary shares of treasury at P30 per share. - Reverse ordinary share split, 2-for-1 - Reissued 6,000 shares in the treasury at P52 per share - Net income for the year, P1,000,000   1. What is the share premium arising from retirement of preference shares? A. 0 B. 100,000 C. 150,000 D. 200,000   2. What is the cost per treasury shares share after the split? A. 15.00 B. 30.00 C. 60.00 D. 90.00   3. What is the par value per ordinary shares after the split? A. 5.00 B. 10.00 C. 20.00 D. 30.00

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.