its P50 par value ordinary shares from a shareholder. On that date, the share's market value was P350 per share. The stock was originally issued for P250 per share. By what amount would this donation cause the total shareholders' equity to decrease? a. P 700,000 b. P 500,000 c. P 200,000 d. 0

its P50 par value ordinary shares from a shareholder. On that date, the share's market value was P350 per share. The stock was originally issued for P250 per share. By what amount would this donation cause the total shareholders' equity to decrease? a. P 700,000 b. P 500,000 c. P 200,000 d. 0

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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Concept explainers

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.

Question

On December 1, 2016, Buggy Corporation
received a donation of 2,000 shares of
its P50 par value ordinary shares from
a shareholder. On that date, the share's
market value was P350 per share. The stock
was originally issued for P250 per share. By
what amount would this donation cause the
total shareholders' equity to decrease?
a. P 700,000
b. P 500,000
c. P 200,000
d. 0

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