Reference no: EM133065585
Questions -
Q1. HULK Corporation declared on December 1, 2021 its 10 brand new fleet of cars costing P500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021 - P4,800,000; December 31, 2021 - P4,500,000; February 1, 2022 -P4,000,000.
What is the carrying amount of the asset held for distribution on December 31, 2021?
a. P 4,500,000
b. P 4,800,000
c. P 4,000,000
d. P 5,000,000
What is the loss on distribution of property dividend to be recognized on February 1, 2022?
a. P 200,000
b. P 800,000
c. P 0
d. P 500,000
Q2. GAMORA Corporation's shareholders' equity is composed of 10,000, P10 par ordinary shares, P40,000 share premium, and accumulated profits of P600,000. If a 40% bonus issue is declared when the shares are selling for P50 per share, what amount should be transferred from the accumulated profits account to the share premium account?
a. P 160,000
b. P -0-
c. P 200,000
d. P 40,000
Q3. On January 1, 2021, WASP Company granted 10,000 share options to each of its 5 managers. The options vest on January 1, 2025. During this date, the fair value of each share option is P50 and it is anticipated that all of the share options will vest on January 1, 2025. How much will be credited to share options outstanding for the year ended December 31, 2021?
a. P 125,000
b. P 625,000
c. P 833,333
d. P 2,500,000