On December 1, 20x1, Line Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the stock's market value was P35 per share. The stock was originally issued for P25 per share. By what amount would this donation cause total stockholders' equity to decrease?

On December 1, 20x1, Line Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the stock's market value was P35 per share. The stock was originally issued for P25 per share. By what amount would this donation cause total stockholders' equity to decrease?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

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#16On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 parvalue ordinary shares from a shareholder. On that date, the share’s market value was 350per share. The stock was originally issued for P250 per share. By what amount would thisdonation cause total shareholder’s equity to decrease? 0 pls provide the correct solution for the given answer
Please show relevant solution and journal entries as well. The highlighted choice is the answer. Please explain how to get it. thanks
#16On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 parvalue ordinary shares from a shareholder. On that date, the share’s market value was 350per share. The stock was originally issued for P250 per share. By what amount would thisdonation cause total shareholder’s equity to decrease? Answer = 0 pls provide the correct solution for the given answer
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