Oolong’s Corporation has an investment in 10,000 shares of Chiatze Company ordinary share with a cost of P436,000. These shares are used in a property dividend to shareholders of Oolong’s. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to shareholders of record on June 15. The fair value per share of Chiatze share is P63 on May 25, P66 on June 15, and P68 on July 31. The net effect of this property dividend on retained earnings is a reduction of a.P680,000 b.P630,000 c.P660,000 d.P436,000

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.