How much is the share premium in excess of par resulting from the above transactions?

What amount should PHARSA CORP. be expensed immediately?

 

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Use the following information in answering the next item(s): PHARSA CORP. undertakes an initial public offering for the listing and issuance of 30,000 new shares and listing of 20,000 old existing shares. The issued shares are issued for P40 per share with a par value of P25 per share. The entity incurred the following costs: Documentary stamp tax Fairness opinion Tax opinion Newspaper publication Listing Fee Prospectus design Other joint cost Facilitation Fee P15,000 100,000 50,000 40,000 90,000 20,000 30,000 20,000 Use the following information in answering the next item(s): PHARSA CORP. undertakes an initial public offering for the listing and issuance of 30,000 new shares and listing of 20,000 old existing shares. The issued shares are issued for P40 per share with a par value of P25 per share. The entity incurred the following costs: Documentary stamp tax Fairness opinion Tax opinion Newspaper publication Listing Fee Prospectus design Other joint cost Facilitation Fee P15,000 100,000 50,000 40,000 90,000 20,000 30,000 20,000

Answer rating: 100% (QA)

We must compute the entire cash received from the issue of shares and deduct the par value of the sh... View the full answer