On September 1, 2019, Pelican Ltd exchanged 10,000 ordinary shares held in treasury for a used machine. The treasury shares were acquired by Pelican at a cost of P40 per share, and are accounted for under the cost method. On the date of the exchange, the ordinary shares had a fair value of P55 per share (the shares were originally issued at P30 per share). As a result of this exchange, Pelican's total equity will increase by P100,000. P400,000. P150,000. P550,000.
On September 1, 2019, Pelican Ltd exchanged 10,000 ordinary shares held in treasury for a used machine. The treasury shares were acquired by Pelican at a cost of P40 per share, and are accounted for under the cost method. On the date of the exchange, the ordinary shares had a fair value of P55 per share (the shares were originally issued at P30 per share). As a result of this exchange, Pelican's total equity will increase by P100,000. P400,000. P150,000. P550,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 1, 2019, Pelican Ltd exchanged 10,000 ordinary shares held in treasury for a used machine. The treasury shares were acquired by Pelican at a cost of P40 per share, and are accounted for under the cost method. On the date of the exchange, the ordinary shares had a fair value of P55 per share (the shares were originally issued at P30 per share). As a result of this exchange, Pelican's total equity will increase by
P100,000.
P400,000.
P150,000.
P550,000.
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