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March Issued 50,000 additional ordinary shares for P8 per share 3 May Declared a dividend of P1.50 per share to be paid on July 31, 2012, 18 to shareholders of record on June 30, 2012. June Approved additional building renovation to be funded internally. 19 The estimated cost of the project is P200,000, and retained earnings are to be restricted for that amount. July 31 Paid the dividend Dec. Declared a property dividend to be paid on January 10, 2013, to 31 shareholders of record on January 5, 2013. The dividend is to consist of equipment with a carrying value of P150,000. The equipments fair value at December 31, 2012, is P157,500 Dec. Reported P442,500 of net income on December 31, 2012, income 31 statement.
Problem 1. The balance in the ordinary share capital account at December 31, 2012, should be
A. P1,095,000
B. P937,500
C. P1,087,500
D. P687,500
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