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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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