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How much will be recorded as a deduction

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Question - On March 10, 2018, Bravo, Inc. board approved a 15% shale dividends to its shareholders of record on May 1. At the time of dividend declaration, the market value of the shares is 17. Shares were received by the shareholders on June 3, including Alpha. On July 5, 750 shares were sold by Alpha Corporation for 20000.

Alpha Corporation has 100,000 shares issued and outstanding; its board approved the distribution of half of its investment in Bravo, Inc as property dividends on August 15 to its shareholders of record as of Sept 1. Alpha Corporation bought 10,000 shares of P10 par value ordinary shares of Bravo, Inc for P184,000 on January 5, 2018. Bravo,Inc has 100,000 shares issued and outstanding.

At the date of declaration the fair value of Bravo, Inc shares in the share market was 18.

How much will be recorded as a deduction from Retained Earnings on the books of Bravo. Inc on the date of declaration?

Reference no: EM132943869

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