The amount reported as expense in relation to the consultancy service is

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mark Company hired Luke, an external consultant, to assess its oil reserves. The service was 
provided over a five-month period and will be settled by Mark Company issuing 100 of its 
shares to Luke to the value of P40,000 at issuance. Mark Company estimated the cash fair 
value of the service at 38,000, based on bids from other consultants. Luke, the consultant 
was considered an employee for tax purposes.

The amount reported as expense in relation to the consultancy service is

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