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On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value preference share for P 600,000. Each preference share carried one detachable share warrant which entitles the holder to acquire at P 35, one share of ABC's P 20 par ordinary share capital. On December 27,2019, the fair value of the preference shares without warrants was P 115 and the fair value of the share warrants was P 5 per share warrant. What is the amount credited to Share Premium- Preference on the issuance of the securities?* O P 40,000 O P 100,000 O P 75,000 D P 25,000

On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value preference share for P 600,000. Each preference share carried one detachable share warrant which entitles the holder to acquire at P 35, one share of ABC's P 20 par ordinary share capital. On December 27,2019, the fair value of the preference shares without warrants was P 115 and the fair value of the share warrants was P 5 per share warrant. What is the amount credited to Share Premium- Preference on the issuance of the securities?* O P 40,000 O P 100,000 O P 75,000 D P 25,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value preference share for P 600,000. Each preference share carried one detachable share warrant which entitles the holder to acquire at P 35, one share of ABC's P 20 par ordinary share capital. On December 27,2019, the fair value of the preference shares without warrants was P 115 and the fair value of the share warrants was P 5 per share warrant. What is the amount credited to Share Premium- Preference on the issuance of the securities? * O P 40,000 P 100,000 P 75,000 P 25,000
Transcribed Image Text:On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value preference share for P 600,000. Each preference share carried one detachable share warrant which entitles the holder to acquire at P 35, one share of ABC's P 20 par ordinary share capital. On December 27,2019, the fair value of the preference shares without warrants was P 115 and the fair value of the share warrants was P 5 per share warrant. What is the amount credited to Share Premium- Preference on the issuance of the securities? * O P 40,000 P 100,000 P 75,000 P 25,000
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