Straw Hat Corporation issued 10,000shares of its P10.00 par value ordinary1 pointshares for a building. The building has afair value of P 400,000. Peter'sordinary share is currently selling forP50 per share. A Corp. should recordthe building at *100,000400,000500,000On December 1, 2016, Buggy1 pointCorporation received a donation of2,000 shares of its P50 par valueordinary shares from a shareholder. Onthat date, the share's market value wasP350 per share. The stock wasoriginally issued for P250 per share. Bywhat amount would this donationcause the total shareholders' equity todecrease? *O P 700,000P 500,000P 200,000ASL Corporation holds 5,00O shares of 1 pointits P10 par value ordinary shares astreasury stock reacquired last monthfor P80,000. On December 2016, Freissued all 5,000 shares for P120,000.Under the cost method of accountingfor treasury stock, the reissuanceresulted in a credit toGain on sale of investments of P70,000Ordinary shares of P100,000Retained earnings of P70,000Share premium of P70,000

When shares are issued in exchange of something other than cash. The value to be recognized is the…

traw Hat Corporation issued 10,000 hares of its P10.00 par value ordinary hares for a building. The building has a air value of P 400,000. Peter's rdinary share is currently selling for -50 per share. A Corp. should record ne building at * ) 100,000 400 000

traw Hat Corporation issued 10,000 hares of its P10.00 par value ordinary hares for a building. The building has a air value of P 400,000. Peter's rdinary share is currently selling for -50 per share. A Corp. should record ne building at * ) 100,000 400 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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