Question
P Company issued 5,000 shares of its common stock, valued at P200,000 to the former shareholders of S Company two years after S company was
P Company issued 5,000 shares of its common stock, valued at P200,000 to the former shareholders of S Company two years after S company was acquired in an all-stock transaction. The additional shares were issued because P Company agreed to issue additional shares of common stock if the average post combination earnings over the next two years exceeded P500,000. P Company will treat the issuance of the additional shares as a (decrease in)
Group of answer choices
-Paid-in capital
-Retained earnings
-Goodwill
-Non-current liabilities of S Company assumed by P
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