On Feb. 1, 2019, Patag Corp. issued 5,000 shares of P100 par convertible preference shares for P110 per share. One share of preference shares can be converted into 2 shares of Patag Corp's P10 par value ordinary shares at the option of the preference shareholder. On Dec. 31, 2020, when the market value was P40 per share, all of the preference shares was converted. 6. What amount should be credited to share premium-preference on Feb. 1, 2019? a. P500,000 b. P125,000 C. P50,000 d. -0-
On Feb. 1, 2019, Patag Corp. issued 5,000 shares of P100 par convertible preference shares for P110 per share. One share of preference shares can be converted into 2 shares of Patag Corp's P10 par value ordinary shares at the option of the preference shareholder. On Dec. 31, 2020, when the market value was P40 per share, all of the preference shares was converted. 6. What amount should be credited to share premium-preference on Feb. 1, 2019? a. P500,000 b. P125,000 C. P50,000 d. -0-
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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