Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate property located in Makati. The current fair value of the real property is at P3,900,000 while Cory Company shares are currently selling in the public market. The shares of Cory are highly speculative and that it has been trading in the market at a 52 week low of P12 to a against a 52 week high of P55. It is currently quoted at P46. By what amount the Share Premium account of Cory Company would increase as a result of the issuance of those shares?

Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate property located in Makati. The current fair value of the real property is at P3,900,000 while Cory Company shares are currently selling in the public market. The shares of Cory are highly speculative and that it has been trading in the market at a 52 week low of P12 to a against a 52 week high of P55. It is currently quoted at P46. By what amount the Share Premium account of Cory Company would increase as a result of the issuance of those shares?

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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