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By what amount should the share premium account increase

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Question - East Co. issued 1,000 shares with P5 par to Howe as compensation for 1,000 hours of legal services performed. Howe usually bills P160 per hour for legal services. On the date of issuance, the share was trading on a public exchange at P140. By what amount should the share premium account increase as a result of the transaction?

Reference no: EM132546641

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