Fraudi Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible preference for a total amount of P12,500,000. At the date of issue, the ordinary shares had a market value of P120 per share and the preference shares are selling at P75 per share. What is the amount credited to share premium from preference shares?

Fraudi Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible preference for a total amount of P12,500,000. At the date of issue, the ordinary shares had a market value of P120 per share and the preference shares are selling at P75 per share. What is the amount credited to share premium from preference shares?

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 5MC

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