Solution-What amount of the proceeds should be allocated

What amount of the proceeds should be allocated

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Reference no: EM132902435

Problem - Remington Company issued 10,000 ordinary shares with P200 par value and 20,000 preference shares with P200 par value for a total consideration of P8,0000,000. At the date of issue, the ordinary share was selling for P360 and the preference share was selling for P270.

1. What amount of the proceeds should be allocated to the preference shares?

a. 6,000,000 b. 5,400,000 c. 4,800,000 d. 4,400,000

2. What amount of the proceeds should be allocated to the ordinary share?

a. 3,600,000 b. 2,000,000 c. 3,200,000 d. 4,000,0000

Reference no: EM132902435

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What amount of the proceeds should be allocated

Reference no: EM132902435

Reference no: EM132902435

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