Ron Corporation issued 10,000 shares of its P25 par treasury ordinary shares for a parcel of land intended as a future plant site. The treasury shares were acquired by Ron at a cost of P30 per share. Ron's ordinary share had a fair value of P40 per share on the date of acquisition. Ron received P50,000 from the sale of scrap when an existing structure on the site was razed. At what amount should the land be carried? P350,000 P250,000 P300,000 P400,000
Ron Corporation issued 10,000 shares of its P25 par treasury ordinary shares for a parcel of land intended as a future plant site. The treasury shares were acquired by Ron at a cost of P30 per share. Ron's ordinary share had a fair value of P40 per share on the date of acquisition. Ron received P50,000 from the sale of scrap when an existing structure on the site was razed. At what amount should the land be carried? P350,000 P250,000 P300,000 P400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ron Corporation issued 10,000 shares of its P25 par treasury ordinary shares for a parcel of land intended as a future plant site. The treasury shares were acquired by Ron at a cost of P30 per share. Ron's ordinary share had a fair value of P40 per share on the date of acquisition. Ron received P50,000 from the sale of scrap when an existing structure on the site was razed. At what amount should the land be carried?
P350,000
P250,000
P300,000
P400,000
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