Item No. 6 is based on the following information: 1091 of Ismuol 9an9qx3 noitesinsg10 Kiss Company received a building in exchange for the company's 6,000 ordinary shares with a par value of P 1,000 per share. On the date of exchange, the carrying amount of the building was P 3,850,000 while its fair value was P 6,400,000. The shares were trading in the stock exchange at P 1,100 per share. 6. What would be the effect of the foregoing transaction on the total share premium? a. P 400,000 increase. C. P 6,000,000 increase. b. P 600.000 decrease. d. P 6,400,000 increase.

Item No. 6 is based on the following information: 1091 of Ismuol 9an9qx3 noitesinsg10 Kiss Company received a building in exchange for the company's 6,000 ordinary shares with a par value of P 1,000 per share. On the date of exchange, the carrying amount of the building was P 3,850,000 while its fair value was P 6,400,000. The shares were trading in the stock exchange at P 1,100 per share. 6. What would be the effect of the foregoing transaction on the total share premium? a. P 400,000 increase. C. P 6,000,000 increase. b. P 600.000 decrease. d. P 6,400,000 increase.

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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