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What amount of retained earnings will be capitalized

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Question 1: The corporation has the following at year end: Share capital, P10 par, 100,000 shares issued and outstanding; Retained earnings unappropriated P1,500,000. The corporation declared 25,000 shares dividend. The share has a market value of P50 per share on the date of declaration. What amount of retained earnings will be capitalized as a result of the dividend declaration?

a. "P1,250,000"

b. "P1,000,000"

c. "P250,000"

d. P-0-

Reference no: EM132905662

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