Reference no: EM132848512

Questions -

Q1. ABC Corporation has 1,000,000 P10 par value ordinary shares authorized. Shares are issued at par value. The entity annually declares P1 cash dividend per share when there were 100,000 shares outstanding in 2017; 200,000 shares outstanding in 2018 and 300,000 shares outstanding in 2019. What is the amount of profit in 2019 if the entity has maintained every year P12 book value per share?

a. P900,000

b. P600,000

c. P500,000

d. P400,000

Q2. On December 31, 2019 ABC Corporation has 100,000 P100 par value ordinary shares outstanding, Share Premium P2,000,000 and Retained Earnings P10,000,000. If in 2020, the entity reported P5,000,000 profit, declared a 2-for-1 share split and followed by 100% share dividend, what is the amount of legal capital in 2020?

a. P 5,000,000

b. P10,000,000

c. P20,000,000

d. P40,000,000

Q3. As of December 31, 2020, ABC Corporation reported 200,000 P10-par value ordinary shares authorized, 100,000 shares issued. Total shareholders equity has a balance of P9,150,000. During 2020, the entity made a profit P3,500,000, declared P1,000,000 cash dividend and 100% share dividend. What is the book value per share in 2019?

a. P 71.50

b. P 76.50

c. P143.00

d. P153.00