What amount be reported as retained earnings immediately

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At the current year end, Spurs Corporation declared 4,000 ordinary shares of P 100 par value in connection with a share capital dividend. The market value per share on the date of declaration was P 150.

The shareholder's equity accounts immediately before issuance of the share capital dividend shares were as follows:

Ordinary share capital, P 100 par,50,000 shares authorized, 20,000 shares outstanding - P 2,000,000
Ordinary Share premium -P3,000,000
Retained earnings -P 1,500,000

Problem 1: What amount should be reported as retained earnings immediately after the share capital dividend?

a. P1,500,000
b. P1,100,000
c. P900,000
d. P2,100,000

Reference no: EM132946058

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