ABC Corporation's performance during the last three years had not been favorable resulting to a deficit...

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ABC Corporation's performance during the last three years had not been favorable resulting to a deficit of P950,000 at December 31, 2020. The company, with the approval of the shareholders, decided to eliminate the deficit through quasi- reorganization which would be effected as follows: The company's 200,000, P20 par ordinary share capital originally issued at an average price of P22 would be reissued with par value of P15. Immediately after the quasi-reorganization, what would be the balance of share premium? * O P 450,000 O P 600,000 O P 1,000,000 O P 1,400,000 ABC Corporation's performance during the last three years had not been favorable resulting to a deficit of P950,000 at December 31, 2020. The company, with the approval of the shareholders, decided to eliminate the deficit through quasi- reorganization which would be effected as follows: The company's 200,000, P20 par ordinary share capital originally issued at an average price of P22 would be reissued with par value of P15. Immediately after the quasi-reorganization, what would be the balance of share premium? * O P 450,000 O P 600,000 O P 1,000,000 O P 1,400,000

Answer rating: 100% (QA)

A P450000 explanation Share premium balance ... View the full answer