ASSIGNMENT 2.

The shareholder's equity section of Nazaro Freight Express, Inc. as at December 31, 2019

appeared as follows:

6% Preference Shares, P75 par, 200,000 shares authorized, 70,000 shares issued P Ordinary shares, P5 stated value, 500,000 shares authorized, share issued and shares outstanding 500,000 Share Premium-Ordinary 600,000 Retained Earnings 1,000,000 Treasury Stock-Ordinary, 10,000 shares, at Cost 40,000