ECE Corporation had the following shareholder’s accounts before the declaration of dividend. Ordinary share capital, P5 par (authorized, 500,000 shares)    1,500,000 Share premium                                                                                                       1,560,000 Retained earnings                                                                                                 1,210,000 Market value of the ordinary share on this date is P40 per share. The company declared and distributed 10% share dividend. How much is the share premium after issuance of bonus shares? Group of answer choices P2,340,000 P3,240,000 P3,915,000 P3,024,000

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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.