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Question - Garnett Company was organized on January 1, 2020 with authorized capital of 100,000shares of P200 par value. On January 10, the company issued 25,000 shares atP220 per share. On March 25, the company issued 1,000 shares for legal services when the fair value was P240 per share. On September 30, 5,000 shares were issued for a tract of land when the fair value was P260 per share. What amount should be reported for share premium? Show solution.
a. P500,000
b. P840,000
c. P540,000
d. P800,000
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