Reference no: EM133123315

Question 1 - The Diaz Company had 100,000 of P15 par value ordinary shares on January 1, 2022. During 2022, the following transactions pertaining to its ordinary shares occurred:

Purchased 5,000 shares as treasury at P30 each,

The ordinary share was split 3-for-1.

Reissued 3,000 treasury shares at P14 each.

What is the total cost of the remaining treasury shares at the end of 2022?

a. P120,000

b. P108,000

c. P60,000

d. P0

Question 2 - On June 1, 2022, Palatulan Corp. offered its employees share options subject to the award being ratified in a general meeting of the shareholders. The award was approved by a meeting on September 5, 2022. The entity's year-end is June 30. The employees were to receive the share options on June 30, 2024. At which date should the fair value of the share options be valued for the purposes of PFRS 2?

a. June 1, 2022

b. June 30, 2022

c. September 5, 2022

d. June 30, 2024

Question 3 - Ramon, Inc. is committed to close a factory in 10 months and shall terminate the employment of all the remaining employees of the factory. Under the termination plan, an employee leaving before closure of factory shall receive on termination date a cash payment of P20,000. However, an employee that renders service until closure of the factory shall receive P60,000. There are 120 employees at the factory. The entity expects 20 employees to leave before closure and 100 employees to render service until closure. What amount should be recognized as termination benefit?

a. P2,000,000

b. P6,400,000

c. P2,400,000

d. P4,000,000