Bulla Company issues 4,000 shares of its P5 par value ordinary share having a fair value of P25 per share and 6,000 shares of its P15 par value preferred share having a fair value of P20 per share for a lump sum of P204,000. What amount of the proceeds should be allocated to the preferred share? a. P182,750 b. P127,500 c. P95,625 d. P111,273

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Bulla Company issues 4,000 shares of its P5 par value ordinary share having a fair value of P25 per share and 6,000 shares of its P15 par value preferred share having a fair value of P20 per share for a lump sum of P204,000.

What amount of the proceeds should be allocated to the preferred share?

a. P182,750

b. P127,500

c. P95,625

d. P111,273

 

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