Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share’s fair value was P35 per share. The share was originally issued for P25 per share. By what amount would this donation cause total shareholders’ equity to decrease? Group of answer choices P 0 P70,000 P20,000 P50,000
Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share’s fair value was P35 per share. The share was originally issued for P25 per share. By what amount would this donation cause total shareholders’ equity to decrease? Group of answer choices P 0 P70,000 P20,000 P50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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16.
Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share’s fair value was P35 per share. The share was originally issued for P25 per share. By what amount would this donation cause total shareholders’ equity to decrease?
Group of answer choices
P 0
P70,000
P20,000
P50,000
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