Reference no: EM132554141
Question 1: ABC Corp reported the following shareholder's equity at the current year end: Share capital , par value of 25 per share with 55,000 issued shares, P 1,375,000; retained earnings of P 2,000,000 and Treasury shares at cost of 30 per share of P 150,000. A 90% share dividend was declared, and all of the treasury shares were issued as share dividend sand the balance from the unissued shares. The shares have market value of 40 per share. What amount of retained earnings should be capitalized?
Question 2: ABC Corp was organized on Jan 1, 2016 with 100,000 authorized shares of P 100 par value. The following transactions occurred during the year: Jan 15: Sold 30,000 shares at p 150 per share. Feb 14: Issued 2,000 shares for legal services with fair value of P 300,000. The shares on this date is quoted at P 160 per share. March 27: Purchased 5,000 treasury shares at a cost of P 12 per share. October 31: issued 4,000,000 convertible bonds at P 110. The bonds are quoted at P 95 without the conversion feature. November 5: declared a 2:1 share split when the fair market value of share is 165 per share. December 31: Sold 10,000 shares at P 75 per share. What is the TOTAL amount be recognized as share premium on December 31, 2016?
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What the loss on disposal would be
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