Mirza Corp. issued 10,000 ordinary shares with a par value of P1 for a building. The building is worth around P500,000. Mirza's common stock is now trading at P45 per share. Mirza Corp. should document the structure at * P10,000 P440,000 P450,000 P500,00

Mirza Corp. issued 10,000 ordinary shares with a par value of P1 for a building. The building is worth around P500,000. Mirza's common stock is now trading at P45 per share. Mirza Corp. should document the structure at * P10,000 P440,000 P450,000 P500,00

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

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

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