Last August 7, 2021, Violet Company issued 2,000 shares of its P10 par value ordinary share capital in exchange for a piece of land to be held for a future plant site. Violet Co.'s ordinary share capital was listed and traded at P27 per share on the same date. The land has no known market value. How much is the increase in ordinary share premium resulting from this exchange? a.) P40,000 b.) P20,000 c.) P0 d.) P34,000 SHOW COMPLETE SOLUTION DO NOT GIVE SOLUTION IN IMAGE FORMATE

Last August 7, 2021, Violet Company issued 2,000 shares of its P10 par value ordinary share capital in exchange for a piece of land to be held for a future plant site. Violet Co.'s ordinary share capital was listed and traded at P27 per share on the same date. The land has no known market value. How much is the increase in ordinary share premium resulting from this exchange? a.) P40,000 b.) P20,000 c.) P0 d.) P34,000 SHOW COMPLETE SOLUTION DO NOT GIVE SOLUTION IN IMAGE FORMATE

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 7P

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