On January 1, 2017, an entity showed the following shareholders' equity: Share capital, 300,000 shares outstanding, P5 par 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 On July 1,2017, the entity declared a property dividend of inventory payable on March 1, 2018. The inventoy had P1,200,000 carrying amount and a fair value less cost to distribute of P1,500,000 on July 1, 2017, P1,800,000 on December 31, 2017 and P2,000,000 on March 1, 2018. The net income for 2017 was P3,000,000. What mount should be reported as retained earnings on December 31, 2017? On December 31, 2017, the inventory should be reported at what amount? What amount should be recognized as gain on distribution of property dividend in 2018?
On January 1, 2017, an entity showed the following shareholders' equity:
Share capital, 300,000 shares outstanding, P5 par 1,500,000
Share premium 3,000,000
On July 1,2017, the entity declared a property dividend of inventory payable on March 1, 2018. The inventoy had P1,200,000 carrying amount and a fair value less cost to distribute of P1,500,000 on July 1, 2017, P1,800,000 on December 31, 2017 and P2,000,000 on March 1, 2018. The net income for 2017 was P3,000,000.
What mount should be reported as retained earnings on December 31, 2017?
On December 31, 2017, the inventory should be reported at what amount?
What amount should be recognized as gain on distribution of property dividend in 2018?
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