What the total par value of the shares of capital stock

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Question - Partners Art and Tony, who share equally in profits and losses, have the following balance sheet as of December 31, 2011:

Cash P120,000

A/Receivable 100,000

Inventory 140,000

Equipment 80,000

Total P440,000

A/payable P172,000

Accum.dep'n 8,000

Art, capital 140,000

Tony, capital 120,000

Total P440000

They agreed to incorporate their partnership, with the new corporation absorbing the net assets after the following adjustments: provision of allowance for bad debts of P10,000; restatement of the inventory at its current fair value of P160,000; and, recognition of further depreciation on the equipment of P3,000. The corporation's capital stock is to have a par value of P100, and the partners are to be issued corresponding total shares equivalent to their adjusted capital balances. What the total par value of the shares of capital stock that were issued to partners Art and Tony?

a. 260.000

b. 267,000

c. 273,000

d. 280,000

Reference no: EM133015224

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