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Question - During 2016 Chris Corporation issued for P110 per share, 5,000 shares of P100 par value convertible preference shares. One preference share can be converted into three shares of Chris' P25 par ordinary shares at the option of the preference shareholder. On December 31, 2017, all of the preference shares were converted into ordinary shares. The market value of the ordinary shares at conversion date was P40 per share. What amount should be credited to the ordinary shares account on December 31, 2017?
a. P 600,000
b. P 550,000
c. P 500,000
d. P 375,000
On 26 July 2018 the company enters into a contract to purchase 30 per cent of the issued capital of Surtex ltd for $350 000.
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