Bamboo Company has sustained heavy losses over a period of time and conditions warrant that Bamboo undergo a quasi- reorganization on December 31, 2021.• Inventory with cost of P3,250,000 was recorded on December 31, 2021 at its market value of P3,000,000.• Property, plant and equipment were recorded on December 31, 2021 at P6,000,000, net of accumulated depreciation. The sound value was P4,000,000.• On December 31, 2021, the share capital is P3,500,000 consisting of 350,000 shares with par value of PI0, the share premium is P8,000,000, and the deficit inretained earnings is P450,000.• The par value of the share is to be reduced from PIO to P5.Immediately after the quasi-reorganization, what is the total shareholders' equity?o a. 3,650,000O b.2,100,000o c.1,750,000O d 1,850,000

Shareholders: Individual who has ownership of one or more shares of the business entity is known as…

Bamboo Company has sustained heavy losses over a period of time and conditions warrant that Bamboo undergo a quasi- reorganization on December 31, 2021 • Inventory with cost of P3,250,000 was recorded on December 31, 2021 at its market value of P3,000,000. Property, plant and equipment were recorded on December 31, 2021 at P6,000,000, net of accumulated depreciation. The sound value was P4,000,00o. • On December 31, 2021, the share capital is P3,500,000 consisting of 350,000 shares with par value of PIO, the share premium is P8,000,000, and the deficit in retained earnings is P450,000. • The par value of the share is to be reduced from PIO to P5. Immediately after the quasi-reorganization, what is the total shareholders' equity? o a 3,650,000 O b. 2.100,000 O c.1,750,000

Bamboo Company has sustained heavy losses over a period of time and conditions warrant that Bamboo undergo a quasi- reorganization on December 31, 2021 • Inventory with cost of P3,250,000 was recorded on December 31, 2021 at its market value of P3,000,000. Property, plant and equipment were recorded on December 31, 2021 at P6,000,000, net of accumulated depreciation. The sound value was P4,000,00o. • On December 31, 2021, the share capital is P3,500,000 consisting of 350,000 shares with par value of PIO, the share premium is P8,000,000, and the deficit in retained earnings is P450,000. • The par value of the share is to be reduced from PIO to P5. Immediately after the quasi-reorganization, what is the total shareholders' equity? o a 3,650,000 O b. 2.100,000 O c.1,750,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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