On December 1, 2018, Ban Company exchanged 40,000 shares of its P10 par value ordinary shares held in treasury for a used machine. The treasury shares were acquired by Ban at a cost of P40 per share and are accounted for under the cost method. On the date of exchange, the ordinary shares had a fair value of P55 per share, but the shares were originally issued at P30 per share. What is the increase in equity as a result of the exchange?

Group of answer choices

A. 1,800,000

B. 1,600,000

C. 2,200,000

D. 600,000

Answer rating: 100% (QA)

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