3. INDIGO Corporation provided the following shareholders' equity accounts. What is the amount of legal capital?a. ₱ 8,981,000b. ₱ 10,233,000c. ₱ 8,725,000d. ₱ 10,443,500 Ordinary share capital, P15 parShare premium - ordinary sharesPreference share capital, P100 no parShare premium – preference sharesSubscribed ordinary share capitalSubscriptions receivable – ordinary shares, collectible currently4,875,0001,462,5003,200,000256,000650,000210,500Retained earnings2,350,000Revaluation surplus420,000

Legal capital is the par value of ordinary shares as well as preference shares. It also includes…

Answered: 3. INDIGO Corporation provided the…

3. INDIGO Corporation provided the following shareholders' equity accounts. What is the amount of legal capital? a. ₱ 8,981,000 b. ₱ 10,233,000 c. ₱ 8,725,000 d. ₱ 10,443,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 17E

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

3. INDIGO Corporation provided the following shareholders' equity accounts. What is the amount of legal capital?

a. ₱ 8,981,000

b. ₱ 10,233,000

c. ₱ 8,725,000

d. ₱ 10,443,500

Ordinary share capital, P15 par
Share premium - ordinary shares
Preference share capital, P100 no par
Share premium – preference shares
Subscribed ordinary share capital
Subscriptions receivable – ordinary shares, collectible currently
4,875,000
1,462,500
3,200,000
256,000
650,000
210,500
Retained earnings
2,350,000
Revaluation surplus
420,000

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