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Mr. A subscribe to buy 1,000 shares of the ordinary shares of entity Z for P22 per share, although the par value is only P10 per share. He pays P4 per share immediately and will pay the remaining P18 per share later. Which of the following is correct? 1. Share premium is increased at the time of the subscription by P4,000 2. On the day of the subscription, a ordinary shares subscribed account is increased for the P10 par value of the stock

Mr. A subscribe to buy 1,000 shares of the ordinary shares of entity Z for P22 per share, although the par value is only P10 per share. He pays P4 per share immediately and will pay the remaining P18 per share later. Which of the following is correct? 1. Share premium is increased at the time of the subscription by P4,000 2. On the day of the subscription, a ordinary shares subscribed account is increased for the P10 par value of the stock

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 81IIP
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Mr. A subscribe to buy 1,000 shares of the ordinary shares of entity Z for P22 per share, although the par value is only P10 per share. He pays P4 per share immediately and will pay the remaining P18 per share later. Which of the following is correct? 1. Share premium is increased at the time of the subscription by P4,000 2. On the day of the subscription, a ordinary shares subscribed account is increased for the P10 par value of the stock A) 1 only B) 2 only C) both 1 and 2 D) neither 1 nor 2
Transcribed Image Text:Mr. A subscribe to buy 1,000 shares of the ordinary shares of entity Z for P22 per share, although the par value is only P10 per share. He pays P4 per share immediately and will pay the remaining P18 per share later. Which of the following is correct? 1. Share premium is increased at the time of the subscription by P4,000 2. On the day of the subscription, a ordinary shares subscribed account is increased for the P10 par value of the stock A) 1 only B) 2 only C) both 1 and 2 D) neither 1 nor 2
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