How much is the net increase in the shareholder's equity of the above transactions?
How much is the net increase in the shareholder's equity of the above transactions?
Chapter22: S Corporations
Section: Chapter Questions
Problem 23CE
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Transcribed Image Text:C. 400,000
d. 600,000
2 shory
r Poo : 2001
73.
At the start of the year, the shareholders: equity section of D Corporation shows the following:
Ordinary share capital, 400,000 shares at P10 par
Share premium-Ordinary share
Accumulated earnings
During the year, the following donations were received from the shareholders:
Land, P500,000 cost; P720,000 fair ,market value
40,000 of its own ordinary shares, P13 fair market value
P4,000,000
2,500,000
1,000,000
The total shareholders' equity after the donations would be:
a. P7,500,000
b. P8,020,000
C. P8,100,000
d. P8,620,000
74.
The following transactions were taken from J Company:
Authorized share capital is 100,000 shares at P100 par per share.
Total subscription of equity share is 15,000 shares at subscription price of P125 per share.
Two-thirds of total subscription were fully paid and issued with share certificate.
The balance of total subscriptions had P400,000 outstanding receivable.
How much is the net increase in the shareholder's equity of the above transactions?
a. P1,475,000
b. P1,875,000
c. P2,275,000
d. P2,975,000
75.Santos Corp. issued 20,000 shares of P5 per ordinary share at P12 per share. On Dec.
31, 2011, Santos' retained earnings were P275, 000. In March 2012, Santos reacquired P5,
000 shares of its ordinary share at P20 per share. In June 2012, Santos sold 1, 000 of
these shares to its corporate offi cers for P25 per share. In September, retired 1,000 of the
shares in treasury. Santos uses the cost method to record treasury stock. Profit for the
year ended Dec. 31, 2012 was P82, 500. At Dec 31, 2012, how much is the ordinary
shareholders' equity?
a. P522, 500
b. P542, 500
C. P537, 500
d. P547, 500
On Dec. 1, M. Penaflor Corp. declared a property dividend of trading investment to be
75.
distributed on Dec.31, 2011, to shareholders of record on Dec. 15, 2011. On Dec. 31, 2011, the
trading investment had a cost of P60, 000 and a fair market value of P78, 000. What is the effect of
this property dividend on M. Penaflor's 2011 retained earnings, after all nominal accounts are close?
a. 78, 000 decrease
b. 60, 000 decrease
C. 18, 000 decrease
d. 0
Duomber 31,
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