Answer with solution and explanation

On December 31, 2018, an entity declared dividends on its ordinary shares payable on March 1, 2019. The entity decided to give the shareholders a choice between a total cash dividend of P2,000,000 or a property dividend in the form of noncash asset from its inventory with carrying amount of P2,500,000 and fair value less cost to distribute of P3,000,000 The entity estimated that 70% of the shareholders will take the option of the cash dividend and 30% will elect the noncash asset. 16. If the shareholders have chosen the cash alternative, the payment of the dividend on March 31, 2019 is recognized as follows: A. Debit to Dividend Payable of P2,000,000 B. Credit to Gain on distribution of property dividend for P800,000 C. Debit to Dividend Payable for P2,300,000 D. Credit to Gain on distribution of property dividend for P500,000 17. If the shareholders have chosen the noncash alternative and the fair value of the inventory remained at P3,000,000 on March 31 2019, the payment of the dividend on is recognized as follows: A. Debit to Dividend Payable of P2,000,000 B. Credit to Gain on distribution of property dividend for P800,000 C. Debit to Dividend Payable for P2,300,000 D. Credit to Gain on distribution of property dividend for P500,000 18. If the shareholders have chosen the noncash alternative and the fair value of the inventory is P3,300,000 on March 31, 2019, the distribution of the noncash asset is recorded as A. Debit to Dividend Payable of P2,000,000 B. Credit to Gain on distribution of property dividend for P800,000 C. Debit to Dividend Payable for P2,300,000 D. Credi to Gain on distribution of property dividend for P500,000 19. Liability dividends are: A. Deferred Cash Dividends B. Scrip Dividends C. Bond Dividends D. All of the above