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Problem 1: Pember Corporation started business in 2009 by issuing 200,000 shares of P20 par ordinary shares of P36 each. In 2014, 20,000 of these shares were purchased for P52 per share by Pember Corporation and held as treasury shares. On June 15, 2015, these 20,000 shares were exchanged as part payment for a piece of property that had a market based value of P 1,310,000. Pember's shares are actively traded and had a fair price of P60 on June 15, 2015. The cost method is used to account for treasury shares. The amount of share premium - treasury resulting from the above events would be
a. P 160,000 c. P 480,000 b. P 390,000 d. P 800,000
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