In May 2013, LEOMORD CORP. made a dividend distribution of one right for each of its 24,000 ordinary shares outstanding. Each right was exercisable for the purchase of 1/10 of a share of LEOMORD's P50 variable rate preference share at an exercise price of P80 per share. On March 15, 2014, none of the rights had been exercised and LEOMORD redeemed them by paying each shareholder P10 per right. How much is the effect on the shareholders' equity as a result of the redemption of share rights?
In May 2013, LEOMORD CORP. made a dividend distribution of one right for each of its 24,000 ordinary shares outstanding. Each right was exercisable for the purchase of 1/10 of a share of LEOMORD's P50 variable rate
2. ANDY CORP. received the following donations during the year 2020: a) Land from WENCY INC., parent of the entity, with a fair value on the date of transaction amounting to P550,000. b) 10,000 shares of another entity from a rich entrepreneur. The market value of the shares on that date is P30 per share. c) Cash of P100,000 from a stockholder owning 20% of the total outstanding shares of the company. How much is the total credit to donated capital?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
