Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par value, 50,000 preference shares with a 10% rate and 40,000 shares of its ordinary shares, par P100. The ordinary shares were selling at P115 per share in the open market and the preference shares were selling at 108 per share. What amount should Fblue record share premium from the issuance of the ordinary shares in this transaction?
Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par value, 50,000 preference shares with a 10% rate and 40,000 shares of its ordinary shares, par P100. The ordinary shares were selling at P115 per share in the open market and the preference shares were selling at 108 per share. What amount should Fblue record share premium from the issuance of the ordinary shares in this transaction?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par value, 50,000
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