Problem 11 Problem 20-11 (AICPA Adapted)At the beginning of current year, Ashe Company wasorganised with authorized abare capital of 100,000 shares ofP200 par valueDuring the current year, the entity had the followingtransactions affecting shareholders equity:JanuaryMarch10 Issued 25,000 shares at P220 a share25 Issued 1,000 ahares for legal services whenthe fair value was P240 a share.September 30 Issued 5,000 shares for a tract of land whenthe fair value was P260 a shareWhat amount ahould be reported as share premium atyear-end?a. 840.000b. 800,000S 540,000d. 600,000

A company's balance sheet usually includes a share premium account. This account is credited for…

Problem 20-11 (AICPA Adapted) At the beginning of carrent year, Aahe CompAny was organied with authorined share cspital of 100,000 shares of P200 par value During the eurrent year, the eatity had the following transactions affecting sharebolder equity January 1o lssed 25.000 ahares at P220 a share March 25 Issued 1,000 shares for legal services when the fair value was P240 share. September 30 lasued 000 shares for a tract of land when the fair value was P260 a share What amount should be reported as share premium at year-end? A M0.000 A800,000 e 40.000 d. 500,000