eslie company issued 60,000 shares with a par value of 100 in exchange for a land with fair value of 1,600,000 and a building thereon with a fair value of 5,000,000. What amount of share premium will be credited upon issuance of shares?

eslie company issued 60,000 shares with a par value of 100 in exchange for a land with fair value of 1,600,000 and a building thereon with a fair value of 5,000,000. What amount of share premium will be credited upon issuance of 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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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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Leslie company issued 60,000 shares with a par value of 100 in exchange for a land with fair value of 1,600,000 and a building thereon with a fair value of 5,000,000. What amount of share premium will be credited upon issuance of shares?

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