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Koreans Ltd owned 300,000 of Marley Ltd shares. On 31 December 2019, when Koreans' account Investment in Ordinary Shares of Marley Ltd had a carrying value of P5 per share, Koreans distributed these shares to its shareholders as a dividend.  Koreans originally paid P8 for each share.  Marley has 1,000,000 shares issued, which are traded on a shares exchange.  The quoted market price for a Marley share was P7 on the declaration date and P9 on the distribution date. What would be the reduction in Koreans' shareholders' equity as a result of the above transactions?   P1,200,000 P1,500,000 P2,400,000 P2,700,000

Koreans Ltd owned 300,000 of Marley Ltd shares. On 31 December 2019, when Koreans' account Investment in Ordinary Shares of Marley Ltd had a carrying value of P5 per share, Koreans distributed these shares to its shareholders as a dividend.  Koreans originally paid P8 for each share.  Marley has 1,000,000 shares issued, which are traded on a shares exchange.  The quoted market price for a Marley share was P7 on the declaration date and P9 on the distribution date. What would be the reduction in Koreans' shareholders' equity as a result of the above transactions?   P1,200,000 P1,500,000 P2,400,000 P2,700,000

FINANCIAL ACCOUNTING
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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Koreans Ltd owned 300,000 of Marley Ltd shares. On 31 December 2019, when Koreans' account Investment in Ordinary Shares of Marley Ltd had a carrying value of P5 per share, Koreans distributed these shares to its shareholders as a dividend.  Koreans originally paid P8 for each share.  Marley has 1,000,000 shares issued, which are traded on a shares exchange.  The quoted market price for a Marley share was P7 on the declaration date and P9 on the distribution date. What would be the reduction in Koreans' shareholders' equity as a result of the above transactions?
 
P1,200,000
P1,500,000
P2,400,000
P2,700,000
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