How much share premium must be reallocated by Pe Inc. due to the dilution to its ownership interest over So Corp.?

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 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
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In January 1, 2021, Pe Inc. purchased So Corp.’s 61,200 shared of P6,000,000. This represents a 61.2% ownership of Pe Inc. and So Corp. The net assets of So Corp. was P8,000,000 in the consolidated balance sheet as of December 31, 2023. After much deliberation, on January 1, 2024, So Corp. issues an additional 20,000 shares to unrelated parties for P2,500,00. How much share premium must be reallocated by Pe Inc. due to the dilution to its ownership interest over So Corp.?

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