What would be the reduction in singer equity

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Question - Singer Corporation owned 900,000 shares of Writer Corporation. On December 31, 2019, when Singer's account "Investment in Writer Corporation" had a carrying value of P5 per share, Singer distributed these shares to its shareholders as a dividend. Singer originally paid P8 for each share. Writer has 3,000,000 shares issued and outstanding, which are traded on a national stock exchange. The quoted market price for a Writer share was P7 on the declaration date and P9 on the distribution date. What would be the reduction in Singer's equity as a result of the above transactions?

Reference no: EM132979931

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