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Question - TOPIC - Corporations - Shareholder's Equity, Dividends, etc.
Country: Philippines
1. In 2021, a company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% down-payment. What is the amount of the company's legal capital in 2021?
2. A company issued 1,000 shares of its P5 par value ordinary shares as payment for 1,000 hours of legal services performed. The fair value of the legal services was P160,000. On the date of issuance, the company's shares were trading n a public exchange at P140 per share. Determine the increase in the company's equity as a result of this transaction.
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