The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: • Professional fees of P40,000. • Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be O P311,000 O P332,000 O P360,000 O P320,000
The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: • Professional fees of P40,000. • Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be O P311,000 O P332,000 O P360,000 O P320,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs
in relation to the share issue:
• Professional fees of P40,000.
• Internal management time in managing the process of P30,000.
These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%.
In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of
Resty as a result of the transaction will be
O P311,000
O P332,000
O P360,000
O P320,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f844d3f-74ce-4fec-9966-e16d082c329d%2F710810fa-4dab-4b80-b535-e214c4a61fe8%2Fmwwoijn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs
in relation to the share issue:
• Professional fees of P40,000.
• Internal management time in managing the process of P30,000.
These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%.
In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of
Resty as a result of the transaction will be
O P311,000
O P332,000
O P360,000
O P320,000
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