How much is the legal capital? VIOLET Corporation was incorporated on January 1, 2020 with thefollowing authorized capitalization: (a) 40,000 ordinary shares, no parvalue, stated value P40 per share (b) 10,000 shares of 5% cumulativepreference share, par value P10 per share. During 2020, Violet issued24,000 ordinary shares for a total consideration of P1,200,000 and 6,000preference share at P16 per share. In addition, on December 19, 2020,subscriptions for 2,000 preference shares were taken at a purchase priceof P17. These subscribed shares were paid for on January 2, 2021. Howmuch is the legal capital? *O B 1,296,000O B 1,280,000O B 1,040,000P 1,330,000

Legal capital refers to the par value/stated value of the shares issued.

Answered: How much is the legal capital?

Business

Accounting

How much is the legal capital?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...

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