Reference no: EM133006811

Question - Great, Inc. has 900,000, P 10 par value, authorized shares as it was organized early 2015. The following transactions occurred after the authorization:

2015 Issued 90,000 shares for P 990,000

Net Income during the period was P 37,500

2016 July 31 Issued 150,000 shares for P 1,875,000

Oct 2 5% share dividend was declared to be issued on November 6 to stockholders on record October 23. Market value of shares at the date of declaration is P 11 per share.

Net Income during the year is P 105,000

2017 Feb. 1 Reacquired 9,000 shares for P 9 per share.

June 2 Sold 4,500 treasury shares for P 12 per share

Sept. 5 Issued one right for each share to purchase two additional share for P 13 per share. This right will expire on December 31, 2017.

Oct. 2 75,000 rights issues were exercised when the market value of ordinary share was P 14.

Nov. 5 120,000 rights issues were exercised when the market value of ordinary share was P 15.

Dec. 15 Declare P 0.30 per share cash dividend, payable on January 10, 2018, to shareholders on record on December 31, 2017

Dec 21 Retired 3,000 of its treasury shares and had them revert back to unissued basis. The market value of the ordinary share was P 16 per share on this date

Net income for the year was P 240,000.

Required - What the balance of Treasury Shares as of December 31, 2017?

a. P54,000

b. P81,000

c. P13,500

d. P40,500