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? а. Р 700,000 b. P 500,000 с. Р 200,000 d. 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
а. Р 700,000
b. Р 500,000
с. Р 200,000
d. 0
Transcribed Image Text: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? а. Р 700,000 b. Р 500,000 с. Р 200,000 d. 0
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