Reference no: EM132804027

Problem 1: At January 1, 2019, ABC Corporation had issued 12,000 ordinary shares. On May 31, 2019, ABC Corporation reacquired 2,000 ordinary shares as treasury stock. On June 30, 2019, ABC Corporation declared dividend P2 per share. What is the total amount of dividend declared?

a. P28,000

b. P4,000

c. P24,000

d. P20,000

Problem 2: ABC Corporation acquired 5,000 shares of G&G Corporation ordinary shares on October 20, 2018 for P825,000. On Nov. 30, 2020. G&G Corporation distributed a 10% ordinary share dividend when the market price of the stock was P250 per share. On Dec. 20, 2020, ABC Corporation sold 500 shares of its G&G stock for P132,500 For the year ended Dec. 31, 2020, how much should ABC Corporation report as dividend revenues?

a. P132,500

b. Zero

c. P125,000

d. P57,500