Aqaba Corporation owned 900,000 shares of Irbid Corporation. On December 31, 2019, when Aqaba's account Investment...

 

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Aqaba Corporation owned 900,000 shares of Irbid Corporation. On December 31, 2019, when Aqaba's account "Investment in Irbid Corporation" had a carrying value (cost) of JOD4 per share, Aqaba distributed these shares to its shareholders as a dividend. Irbid Corp. has 3,000,000 shares issued and outstanding, which are traded on a national stock exchange. The quoted market price for a Irbid share was JOD9 on the declaration date and JOD7 on the distribution date. What would be the reduction in Agaba's equity as a result of the above transactions? Aqaba Corporation owned 900,000 shares of Irbid Corporation. On December 31, 2019, when Aqaba's account "Investment in Irbid Corporation" had a carrying value (cost) of JOD4 per share, Aqaba distributed these shares to its shareholders as a dividend. Irbid Corp. has 3,000,000 shares issued and outstanding, which are traded on a national stock exchange. The quoted market price for a Irbid share was JOD9 on the declaration date and JOD7 on the distribution date. What would be the reduction in Agaba's equity as a result of the above transactions?