1) As of December 15, 2020, ABC Corporation reported Ordinary Shares, 100,000 shares issued and outstanding, P15,000,000; Share Premium, P2,000,000; Retained Earnings, P9,150,000. The next day, the entity received donation P1,000,000 cash and 4,000 of its own shares from a shareholder when the market price is P261.50 per share. What is the new book value per share?

a. P282.81

b. P271.50

c. P293.71

d. P281.96

2) On October 1, 2019, ABC Corporation shareholders' equity showed: Ordinary Shares, P100 par value, 50,000 shares authorized; P3,000,000; Share Premium, P120,000; and Retained Earnings P1,200,000 Which of the following IS TRUE when the entity declares 10% share dividend when the market price is P145 per share?*

a. Retained earnings will decrease by P300,000 only.

b. Share Premium account will remain at P120,000.

c. Ordinary share account increase by P300,000.

d. The book value per share will increase.

3) ABC Corporation was organized on January 1, 2019 with issuance of P100 par value 300,000 ordinary shares at total consideration P33,590,000. During 2019 and 2020, the entity reported net income of P5,527,000 and P2,523,000, respectively. At December 31, 2019 and 2020, the retained earnings showed balances of P4,527,000 and P5,300,000. What is the change in the dividend per share?*

a. 2.50

b. 5.83

c. 8.41

d. 18.42

4) As of December 31, 2020, ABC Corporation reported 200,000 P10-par value ordinary shares authorized, 100,000 shares issued. Total shareholders equity has a balance of P9,150,000. During 2020, the entity made a profit P3,500,000, declared P1,000,000 cash dividend and 100% share dividend. What is the book value per share in 2019?*

a. P 71.50

b. P 76.50

c. P143.00

d. P153.00

5) On October 1, 2019, ABC Corporation shareholders' equity showed: Ordinary Shares, no-par value, 50,000 shares authorized; 30,000 shares issued and outstanding, P1,290,000;; and Retained Earnings P1,200,000. When the board of directors changes the no-par value ordinary shares to P40-par value, how will this affect the book value per share?

a. Decrease the book value per share.

b. Increase the book value per share.

c. Book value per share will remain the same.