Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the successful completion of a lawsuit that Matthew Company is currently defending. The lawyers spent 250 hours working on the case. On the basis of recent invoices from the lawyers, Matthew Company determines the fair value of the services received to be P1,400 per hour. The quoted price of the shares was P58. The amount to be reported as expense in relation to legal services received is. b. Mark Company hired Luke, an external consultant, to assess its oil reserves. The service was provided over a five-month period and will be settled by Mark Company issuing 100 of its shares to Luke to the value of P40,000 at issuance. Mark Company estimated the cash fair value of the service at 38,000, based on bids from other consultants. Luke, the consultant was considered an employee for tax purposes. The amount reported as expense in relation to the consultancy service is
a. Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to
the successful completion of a lawsuit that Matthew Company is currently defending. The
lawyers spent 250 hours working on the case. On the basis of recent invoices from the
lawyers, Matthew Company determines the fair value of the services received to be P1,400
per hour. The quoted price of the shares was P58. The amount to be reported as expense in
relation to legal services received is.
b. Mark Company hired Luke, an external consultant, to assess its oil reserves. The service was
provided over a five-month period and will be settled by Mark Company issuing 100 of its
shares to Luke to the value of P40,000 at issuance. Mark Company estimated the cash fair
value of the service at 38,000, based on bids from other consultants. Luke, the consultant
was considered an employee for tax purposes. The amount reported as expense in relation
to the consultancy service is
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