The December 31, 2020 condensed Statement of Financial Position of ALL STAR Entertainment Services, a sole proprietorship of RATTLETRAP follows:

Current Assets P 1,400,000 Property, Plant and Equipment net 1,300,000 P 2,700,000 Liabilities P 700,000 RATTLETRAP, Capital 2,000,000 P 2,700,000

On January 15, 2020, ALL STAR Entertainment Services was incorporated with 10,000 shares of P100 par value common shares issued. Prior to incorporation, Mr. RATTLETRAP had determined the following fair market values:

Current Assets P 1,600,000 Property, Plant and Equipment 2,100,000 Liabilities 700,000

1. What amount should be credited to Share Premium?

P3,200,000

P2,300,000

P2,500,000

P2,000,000

Mirana Co. owes 150000 loan payable to RIKIMARU UNIVERSAL BANK as of June 30, 2014. RIKIMARU accepted 20000 shares of Mirana as full payment of the Loan. At this date the shares are selling at P6 per sharE. THE SHARE HAS 5p PAR VALUE BASED ON THE SHARE RECORDS. bY WHAT AMOUNT WOULD the shareholder's equity change as a result of the issuance of shares to RIKIMARU.

P120000 increase

P100000 increase

P150000 decrease

P120000 Decrease