SHAREHOLDERS EQUITY PROBLEMS

Problem 3

Polar Company issued 20,000 new P_100 per ordinary shares at a fair value of P180 each. The entity incurred professional fee of P400,000 and internal management time of P300,000 in managing the process in relation to the share issue. What is the increase in equity as a result of the issuance of shares?

a. 3,200,000b. 3,320,000c. 2,900,000d. 2,970,000

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