At the beginning of the current year, Cove company, a closely-held entity, issued 6% bonds with a maturity value of P6,000,000, together with 10,000 ordinary share of P50 par value, for a combined cash amount of 11,000,000, if the bonds were issued separately, they would have sold for P4,000,000 on an 8% yield to maturity basis.

• What amount should be reported for share premium on the issuance of the ordinary shares?

During the current year, Line Company received a donation of 2,000 shares with P50 par value from a shareholder. On that date, the share market value was P350. The shares were originally issued for P250 per share.

• What is the decrease in shareholder's equity as a result of the