Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LF (DIY) DRILL 4. On December 31, 2016, Camiguin Company shows the following data with respect to its matured obligation. Note payable P6,000,000 1,500,000 Accrued
LF (DIY) DRILL 4. On December 31, 2016, Camiguin Company shows the following data with respect to its matured obligation. Note payable P6,000,000 1,500,000 Accrued interest payable The company is threatened with a court suit if it could not pay its maturing debt. Accordingly, the company enters into an agreement with the creditor for the issuance of ordinary shares in full settlement of the note payable. The agreement provides for the issue of 50,000 ordinary shares with par value of P100. The ordinary share is currently quoted at P150 per share. How much is the share premium arising from the debt restructuring considered as "equity swap"? P1,000,000 P2,500,000 P1,500,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started