Old MathJax webview

Old MathJax webview

COVID Inc shareholders equity account balance at December 31, 2018, were as follows Ordinary share 800,000 Additional pald-in capital 1,600.000 Retained earnings 1.845.000 The following 2019 transactions and other information relate to the shareholders' equity accounts: a. Covid had 400,000 authorized shares of P5 par ordinary share, of which 160,000 shares were issued and outstanding b. On March 5, 2019. Covid acquired 5,000 shares of its ordinary share for P10 per share to hold as treasury share. The shares were originally issued at P15 per share. Covid uses the cost method to account for treasury share. Treasury share is permitted in Covid's state of incorporation. c. On July 15. 2019, Covid declared and distributed a property dividend of inventory. The inventory had a P75,000 carrying value and a P60,000 fair market value. d. On January 2, 2017. Covid granted share options to employees to purchase 20,000 share of Covid's ordinary share at P18 per share, which was the market on that date. The option may be exercised within a three year period beginning January 2, 2019. The measurement date is the same as the grant date. On October 1, 2019, employees exercised all 20.000 options when the market value of the share was P25 per shar Covid's new shares to set the ion. e Covlds's net income for 2019 was P240.000