1. Which of the following is a characteristic of a corporation?

A. Unlimited liability of the owners

B. Right of succession
C. Limited life
D. Exempt from taxation

2. What does the par value of share capital represents?

A. Liquidation value of the share capital.
B. Book value of the share capital
C. Legal nominal value assigned to the share capital.
D. Amount received by the corporation when the share was originally issued

3. Ownership of shares in the ordinary share capital of a corporation entitles the holders to the
following rights:

I. To elect the board of directors of the corporation.

II. To share in the profits of the corporation.
III. To purchase new shares when they are offered for sale.
IV. To participate in the daily operations of the corporation.

A. I, II, III, and IV

B. II, III, and IV
C. I, III, and IV
D. I, II, and III

4. The entry to record the issuance of ordinary shares for fully paid subscription is
A. A memorandum entry
B. Ordinary Shares Subscribed
Ordinary Share Capital
 Share Premium - Ordinary Share
C. Ordinary Share Subscribed
Subscription Receivable
D. Ordinary Share Subscribed
Ordinary Share Capital

5. Which feature of preference share makes it more of a liability than an equity account?
A. Callable
B. Convertible
C. Participating
D. Redeemable

6. Which of the following transaction costs relating to the issue of share capital shall be charged
to profit or loss?
A. SEC registration fees for the issue of new shares
B. underwriting cost
C. stock exchange listing fees
D. documentary stamp tax in public offerings of share

7. A holder of redeemable preference share can

A. purchase treasury shares any time at the stockholders option
B. purchase additional shares offered in order to maintain the same fractional interest in the
corporation
C. turn in the preference shares for a specified cash price at a specified date or during a specified
period.
D. convert the preference shares for ordinary shares.

8. How would a share split affect each of the following?

 Total Shareholders
Assets Equity Additional Paid-in Capital
A. Increase Increase No effect
B. No effect No effect No effect
C. No effect No effect Increase
D. Decrease Decrease Decrease

9. Treasury share is appropriately presented on the statement of financial position as a

A. financial asset at fair value.
B. deduction at cost from total shareholders equity
C. deduction at cost from total contingent liabilities.
D. deduction at par from total shareholders equity

10. Gains of losses on the purchase and resale of treasury share are reflected in
A. contributed capital.
B. contributed capital accounts and retained earnings account.
C. profit or loss, contributed capital, and retained earnings accounts.
D. profit of loss and other comprehensive income.

11. At the date of the financial statements, ordinary shares issued would exceed ordinary shares
outstanding as a result of the
A. declaration of a share split.
B. declaration of a bonus issue.
C. purchase of treasury shares.
D. payment in full of subscribed shares.

12. On February 1, authorized ordinary share capital was sold on a subscription basis at a price in
excess of par value, and 20% of the subscription price was collected. On May 1, the remaining
80% of the subscription price was collected. Additional paid in capital would increase on
 February 1 May 1
A. No Yes
B. No No
C. Yes No
D. Yes Yes

13. A company declared a cash dividend on its ordinary shares in December 2016, payable in
January 2017. Retained earnings would
A. increase on the date of declaration.
B. not be affected on the date of declaration.
C. not be affected on the date of payment.
D. decrease on the date of payment.

14. Preference share that has a claim on any prior year dividends that may have passed is
A. cumulative
B. participating
C. non-cumulative
D. non-participating

15. How will retained earnings be affected by purchase of treasury shares and subsequent sale of
treasury shares at more that acquisition cost?

Acquisition of TS Sale of TS
A. no effect increase
B. Increase no effect
C. no effect no effect
D. Increase decrease
16. A company issued rights to its existing shareholders to purchase, for P30 per share, unissued
shares of P15 par value ordinary share capital. Additional paid-in capital will be credited when the

Rights are issued Rights are exercised Rights lapse

A. Yes No No
B. No No Yes
C. No Yes No
D. Yes Yes Yes

17. A company issued rights to its existing shareholders to purchase ordinary shares. When the
rights are exercised, share premium would be credited if the purchase price.
A. exceeded the par value.
B. was the same as the par value.
C. was the same as the par value, but less than the market value at the date of exercise.
D. was less than the par value.

18. A company issued rights to its existing shareholders to purchase, for P30 per share unissued
ordinary shares of P15 par value. When the rights lapse,
A. no entry will be made
B. additional paid-in capital will be debited
C. additional paid-in capital will be credited
D. stock rights outstanding will be debited

19. Non-participating preference shares means

A. ordinary shareholders receive a dividend rate per share equal to the preference share and all
excess dividends are given to the ordinary shareholders.
B. ordinary shareholders receive a dividend rate per share equal to the preference share and all
excess dividends are given to the preference shareholders.
C. ordinary shareholders receive a dividend rate per share equal to the preference share and all
excess dividends are shared proportionately between the two classes.
D. preference shareholders receive their full dividend and any excess is given to the ordinary
shareholders.

20. Assuming that the issuing company has only one class of share capital, a transfer from retained
earnings to contributed capital equal to the fair value of the shares issued is ordinarily a
characteristic of
A. either a bonus issue or a share split.
B. neither a bonus issue nor a share split.
C. a share split but not a bonus issue.
D. a bonus issue but not a share split.

21. Dividends in arrears are shown on the financial statements as

A. current liabilities.
B. contra-equity accounts.
C. contra-asset accounts.
D. note disclosures only.

22. Select the statement that is incorrect concerning the appropriations of retained earnings.
A. Appropriations of retained earnings do not change the total amount of shareholders equity.
B. Appropriations of retained earnings reflect funds set aside for a designated purpose, such as
plant expansion.
C. Appropriations of retained earnings can be made as a result of contractual requirements.
D. Appropriations of retained earnings can be made at the discretion of the board of directors.

23. Under IFRS 2 Share-Based Payment, what is the basis for measurement of share options?
A. Fair value at the date of grant.
B. Fair value at each reporting date.
C. Expected fair value at the date pf exercise.
D. Intrinsic value at each reporting date.
24. Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall
A. be credited to expense during the period the options lapse.
B. be credited to income during the period that the options lapse
C. remain in equity.
D. be converted into a liability.

25. When should the compensation expense be recorded as a result of share options granted by the
enterprise to its employees?
A. During the year of grant
B. During the year that the options ultimately vest
C. During the years when services are required to be rendered by the employees
D. During the year when the option first becomes exercisable

26. In 2016, Inna Corporation acquired 6,000 shares of its P10 par values ordinary share capital at
P36 per share. During the same year, Inna issued 3,000 of these shares at P50 per share. Inna uses
the cost method to account for its treasury share transactions.
What accounts and amounts should Inna credit in 2016 to record the issuance of the 3,000 shares?

Treasury Share Retained Ordinary

Share Premium Earnings Share
A. - P102,000 P42,000 P6,000
B. - P144,000 - P6,000
C. P108,000 P42,000 - -
D. P108,000 - P42,000 -

27. The shareholders equity of May Company revealed the following on June 30, 2016:
Preference Share, P100 par value P230,000
Share Premium Preference 80,500
Ordinary Share, P15 par value 525,000
Share Premium Ordinary 275,000
Subscribed Ordinary Share 5,000
Retained Earnings 190,000
Notes Payable 400,000
Subscription Receivable Ordinary 40,000

How much is the legal capital of the company?

A. P755,000
B. P760,000
C. P1,115,000
D. P1,305,000

28. On March 2, 2016, Nanette Corporation issued 4,000 shares of 6% cumulative P100 par value
preference share for P480,000. Each preference share carried one detachable share warrant which
entitles the holder to acquire at P35, one share of Nanettes P10 par ordinary share capital.
On March 2, 2016, the fair value of the preference share without the warrants was P110 per share
and the fair value of the share warrants was P10 per warrant.
What is the amount credited to Share Premium 0 Preference by Nanette on the issuance of the
securities?
A. P0
B. P40,000
C. P50,000
D. P80,000

29. The following accounts are shown on the statement of financial position of Pay Company:
Share capital, P100 par, 1,000 shares P100,000
Share Premium 2,000
Share Premium Treasury Shares 3,000
Retained Earnings 75,000
Treasury Shares, 200 shares at cost 25,000

All the 200 treasury shares were sold for P20,000. How would the resale of the treasury shares be
recorded?
A. Cash 20,000
Treasury Shares 20,000
B. Cash 20,000
Share Premium 2,000
Share Premium Treasury Shares 3,000
Treasury Shares 25,000
C. Cash 20,000
Retained Earnings 5,000
Treasury Shares 25,000
D. Cash 20,000
Share Premium Treasury Shares 3,000
Retained Earnings 2,000
Treasury Shares 25,000
30. Queenie Corporation was incorporated on January 2, 2016. The following information pertains
to Queenies ordinary share transactions during the year.
January 1 Number of shares authorized 80,000
February 1 Number of shares issued 60,000
July 1 Number of shares reacquired but not canceled 5,000
December 1 Two-for-one share split
What is the number of Queenie Corporations ordinary share outstanding at December 31, 2016?
A. 150,000
B. 120,000
C. 115,000
D. 110,000

31. Of the 125,000 ordinary shares issued by Lay Company, 25,000 were held as treasury shares
on December 31,2016. During 2017, transactions involving Lays ordinary shares were as follows:
January 1 through October 31 13,000 treasury shares were distributed to officers as part of share
compensation plan.
November 1 A 3-for-2 share split took effect.
December 1 Lay purchased 5,000 of its own shares to discourage an unfriendly takeover. These
shares were not retired.
At December 21, 2017, how many shares of Lays Companys ordinary share capital were issued?
A. 125,000 shares
B. 324,000 shares
C. 334,000 shares
D. 375,000 shares

32. Use the same information given in item 31. How many shares of Lay Company ordinary share
capital were outstanding?
A. 334,000 shares
B. 324,000 shares
C. 125,000 shares
D. 108,000 shares

33. On June 1, 2016, Pat Corporation declared a bonus issue entitling its shareholders to one
additional share for each share held. At the time the dividend was declared, the fair value was
P10 per share and the par value was P5 per share. On this date, Pat had 600,000 of ordinary
shares outstanding.
What entry should Pat make to record this transaction?
A. Retained Earnings 6,000,000
Share Dividends Distributable 3,000,000
Share Premium 3,000,000

B. Share Dividends Payable 6,000,000

Share Dividends Distributable 3,000,000
Share Premium 3,000,000

C. Retained Earnings 3,000,000

Share Dividends Distributable 3,000,000

D. No entry

34. The Powerpoint Corporation has two classes of share capital outstanding: 9%, P20 par
Preference and P70 par Ordinary. During the fiscal year ending December 31, 2016, the
company had the following equity transactions in chronological order:
No. of Shares Price per Share
Issue of preference share 10,000 P28
Issue of ordinary share 35,000 70
Reacquisition and retirement of preference 2,000 30
Purchase of treasury ordinary share 5,000 80
Share split 2-for-1
Reissue of treasury ordinary share 5,000 52

Balances of the accounts in the shareholders equity section of the December 31, 2015 statement
of financial position were:

Preference Share Capital, 50,000 shares P1,000,000

Ordinary Share Capital, 100,000share 7,000,000
Share Premium Preference 400,000
Share Premium Ordinary 1,200,000
Retained Earnings 550,000

Dividends were paid at the end of the fiscal year on the ordinary share at P1.20 per share and on
the preference at the preference rate. Profit for the year was P850,000.
How much should be the amount of Preference Share Capital to be shown on the December 31,
2016 statement of financial position?
A. P1,220,000
B. P1,160,000
C. P1,140,000
D. P1,116,000

35. Use the same information given in no.34. How much should be the amount of Ordinary
Share Capital to be shown on the December 31, 2016 statement of financial position?
A. P9,450,000
B. P9,310,000
C. P9,130,000
D. P4, 725,000

36. Use the same information given in no.34. The retirement of the 2,000 preference shares
would decrease Share Premium Preference by
A. P0
B. P16,000
C. P20,000
D. P60,000

37. Use the same information given in no.34. After the split, the par value per share of the
ordinary share capital
A. remained at P70.
B. was increased by P70.
C. was reduced by P35.
D. was reduced by P14.

38. Use the same information given in no.34. What is the total cost of the remaining treasury
shares?
A. P0
B. P200,000
C. P260,000
D. P400,000

39. On March 30,2016, Mitz Co. declared a 30% bonus issue on its ordinary shares. Shares were
selling on the market on this date at P25 per share. The par value is P10 per share and 180,000
shares are outstanding. In distributing the bonus issue, Mitz Co. issued fractional share warrants
totaling 600 shares. Assuming that 60% of the warrants are exercised and the remaining warrants
expire, the entry to record the exercise and expiration of the fractional share warrants is
A. Fractional Share Warrants Issued 15,000
Ordinary Share Capital 9,000
Share Premium Forfeited Warrants 6,000
B. Fractional Share Warrants Issued 6,000
Ordinary Share Capital 3,600
Share Premium Forfeited Warrants 2,400

C. Fractional Share Warrants Issued 15,000

Ordinary Share Capital 9,000
Share Premium Forfeited Warrants 6,000
D. Fractional Share Warrants Issues 15,000
Ordinary Share Capital 9,000

40. Quebec Corporation, a calendar-year company, had sufficient amount or retained earnings in
2016 as a basis for dividends of P100,000 on April 1, 2016, and issued promissory notes to its
shareholders in lieu of cash. The notes, which were dated April 1, 2017, and a 10% interest rate.
How should Quebec amount for the scrip dividend and related interest?
A. Debit Retained Earnings for P110,000 on April 1, 2016.
B. Debit Retained Earnings for P110,000 on March 1, 2017.
C. Debit Retained Earnings for P100,000 on April 1, 2016 and debit Interest Expense for
P10,000 on March 31, 2017.
D. Debit Retained Earnings for P100,000 on April 1, 2016 and debit Interest Expense for P7,500
on December 31, 2016.

41. On May 1, 2016, Maine Company issued P2 Million, 20-year, 10% bonds for P2,120,000.
Each P1,000 bond had a detachable ordinary share for P60. Immediately after the bonds were
issued, Maines securities had the following market values: 10% bonds without warrants
P1,040; Warrants P20; Ordinary Share P50 par P56.
What amount should Maine record as part of equity as a result of the foregoing?
A. P120,000
B. P80,000
C. P40,000
D. P0
42. The directors of Pete Corporation, whose P50 par value ordinary share is currently selling at
P70 per share, have decided to declare a bonus issue. Pete has an authorization for 250,000
ordinary shares, has issued 100,000 shares of which 10,000 shares are now held as treasury, and
desires to capitalize P945,000 of the Retained Earnings balance. To accomplish this, the
percentage of bonus issue that the directors should declare is
A. 18.9%
B. 15%
C. 12%
D. 9%

43. Sine Co. had outstanding 20,000 shares of P100 par value 8% cumulative preference share
capital and 30,000 shares of P50 par value ordinary share capital on December 31, 2015. On
December 31, 2015, dividends in arrears on the preference shares were P80,000. Cash dividends
declared in 2016 totaled P300,000. The amounts paid to preference shareholders and ordinary
shareholders are
A. P 80,000 and P220,000
B. P160,000 and P140,000
C. P220,000 and P 80,000
D. P240,000 and P 60,000

44. At December 31, 2016, Paste Company had 30,000 shares of P100 par, 5% cumulative
preference share outstanding. No dividends were in arrears as of December 31, 2014, Paste did
not declare dividends during 2015. During 2016, Paste paid a cash dividend of P100,000 on its
preference share.
Paste should report dividends in arrears in its 2016 financial statements as a/an
A. accrued liability of P150,000
B. disclosure of P150,000
C. accrued liability of P200,000
D. disclosure of P200,000

45. Way Company reported the following in its statement of shareholders equity on January 1,
2016:
Ordinary Share Capital, P5 par value, 200,000 shares
authorized; 100,000 shares issued P 500,000
Share Premium 1,500,000
Retained Earnings 516,000
 P2,516,000
Less: Treasury Share, 5,000 shares at cost 40,000
Total Shareholders Equity P2,476,000

The following events occurred in 2016:

May 1 1,000 treasury shares were sold for P10,000.
July 9 10,000 shares of previously unissued ordinary share were sold for P12 per
share.
October 1 The distribution of a 2-for-1 share split resulted in the ordinary shares par
value being halved.
How many shares are issued and outstanding at December 31, 2016?
A. 220,000 and 216,000
B. 220,000 and 212,000
C. 110,000 and 106.000
D. 100,000 and 95,000

46. At December 31, 2015 and 2016, Eagle Company had outstanding 4,000 shares of P100 par
value 12% cumulative, fully participating preference share and 20,000 of P10 par value ordinary
share. At December 31, 2015, dividends in arrears on the preference share were P24,00. Cash
dividends declared in 2016 totaled P108,000.
What are the amount of dividend per share on the preference and ordinary shares, respectively?
A. P20.00 and P1.40
B. P20.00 and P1.80
C. P18.00 and P1.40
D. P18.00 and P1.80

47. The shareholders equity section of Doll Corporation as of December 31, 2016 before closing
its book and recording the 2016 dividends is as follows:
Ordinary Share Capital, 100,000 shares issued and outstanding P3,000,000
Share Premium 4,000,000
Retained Earnings 8,000,000

Dolls board of directors declared a 10% bonus issue on December 31,2016 when the fair value
of each share was P70. Accordingly, 10,000 new shares were issued. Dolls share capital has a
par value of P30 per share.
Assuming that Doll sustained a net loss of P1,200,000 for the year 2016, what amount should
Doll report as retained earnings as of December 31, 2016?
A. P6,100,000
B. P6,500,000
C. P8,500,000
D. P8,900,000

48. On December 10, Pia Company split its share capital 5-for-2 when the market value was P65
per share. Prior to the split, Pia had 200,000 shares of P15poar value share capital.
What is the par value of each share after the split?
A. P6.00
B. P15.00
C. P26.00
D. P37.50

49. The Board of Directors of Galleria Suites located in the heart of Ortigas Commercial Complex
wishes to declare a dividend whereby ordinary shareholders shall receive a total per share dividend
of P40. The shareholders equity section of the company has the following information:
Preference Share Capital (P1000 par, 7%, participating up to
10%, non-cumulative; 10,000 shares authorized,
2,500 shares issued and outstanding) P2,500,000
Ordinary Share Capital (P250 par; 25,000 shares authorized,
issued, and outstanding) 6,250,000
Share Premium 1,250,000
Retained Earnings 5,000,000
How much should be the total amount of dividends to be declared to meet the goal of the directors
of P40 per share?

A. P1,400,000
B. P1,250,000
C. P1,175,000
D. P1,000,000

50. On December 29, 2015, Bay Company was registered at the Securities and Exchange
Commission with 100,000 authorized ordinary shares of P100 par value. On the same date, 40,000
shares were sold and issued at P105 per share. On May 14, 2016, the corporation purchased 600
shares of its ordinary share capital at P110 per share. On September 15, 2016, 400 treasury shares
were sold at P95. During 2016, the corporation realized a profit after tax of P830,000 and paid a
cash dividend of P200,000.

What is the total shareholders equity of Bay on December 31, 2016?

A. P10,602,000
B. P4,820,000
C. P4,802,000
D. P4,352,000

51. The capital accounts of Kay, Inc. on December 31, 2015 were as follows:

Preference Share Capital, P20 par, 20,000 shares P 400,000

Share Premium Preference 160,000
Ordinary Share Capital, P80 par, 50,000 shares 4,000,000
Share Premium Ordinary 600,000
Retained Earnings 360,000

During the year ending December 31, 2016, the following summarizes the transactions affecting
the shareholders equity:

April 30 1,000 preference shares were retired at P25 per share.

June 15 2,000 treasury shares were purchased at P85 per share.
June 30 A 2-for-1 share split of the companys ordinary share was declared.
July 31 800 treasury shares were reissued at P50 per share.
Dec. 31 Profit for 2015 was P900,000.

What was the total shareholders equity on December 31, 2016?

A. P6,294,000
B. P6,270,000
C. P6,265,000
D. P5,520,000

52. Use the same information given in number 51. How much was the remaining cost of the
treasury shares on December 31, 2016?

A. P51,000
B. P96,000
C. P102,000
D. P136,000

53. On July 1, 2016, Tools Company granted share options to key employees for the purchase of
20,000 of the companys ordinary share capital at P25 per share. Based on option-pricing model
used by the company, the fair value of each share option on this date was P9.

The options are intended to compensate employees for the next two years. The options are
exercisable within a four-year period beginning July 1, 2018 by grantees still in the employ of the
company. The market price of Tools ordinary share was P33 per share at the date of grant. No
share options were terminated during the year.

How much should Tools charge to compensations expense for the year ended December 31, 2016?

A. P45,000
B. P80,000
C. P90,000
D. P160,000

54. On January 1, 2016, Dan Corporation granted an employee an option to purchase 3,000 shares
of Dans P5 par value ordinary share at P20 each. The option became exercisable on December
31, 2018. The option was exercised on January 10, 2019.

The market prices of Dans share capital were as follows:

January 1, 2016 P30; December 31, 2016 P50; January 10, 2019 P45.
The company cannot reliably determine the fair value of the share option, so it decided to use the
intrinsic value method.

For the year 2016, how much should Dan recognize as compensation expense?

A. P10,000
B. P15,000
C. P25,000
D. P30,000

55. Melissa Corporation granted share options to its employees with a fair value of P4,500,000 on
January 1, 2016. The options vest in three years and the options are exercisable starting January 1,
2019 until December 31, 2019.

On December 31, 2016, it was estimated that 5% of employees will leave the entity during the
vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018,
employees record indicates that 90% of the employees stayed and became entitled to the options.

What would be the expense charged during the year ending December 31, 2016?

A. P1,350,000
B. P1,410,000
C. P1,425,000
D. P1,500,000

56. Use the same information given in number 55. What would be the expense charged during the
year December 31, 2017?

A. P1,350,000
B. P1,395,000
C. P1,410,000
D. P1,500,000

57. Jane Company has granted 200 share appreciation rights to each of its 300 employees on
January 1, 2016. The rights are due to vest on December 31, 2017, with payment being made on
December 31, 2018. During the year 2016, the company estimated that all options would vest;
although only 90% of the options actually vested.
Share prices are as follows:
January 1, 2016 P20
December 31, 2016 24
December 31, 2017 27
December 31, 2018 30

What liability will be recorded on December 31, 2016 as a result of the share appreciation rights?

A. P108,000
B. P120,000
C. P189,000
D. P270,000

58. Use the same information given in number 57. How much compensation expense should be
recorded for the year ended December 31, 2017?

A. P96,000
B. P108,000
C. P120,000
D. P258,000

59. Rod Company had 50,000 shares of P50 par value ordinary share outstanding and 5,000 shares
of P100 par preference share outstanding. The current market value of the ordinary share is P120
and the total shareholders equity amount to P3,600,000. The preference share has a liquidation
value of P140 per share and no dividends are in arrears. What is the book value per ordinary share?

A. P50.00
B. P58.00
C. P72.00
D. P120.00

60. The Mike Corporations statement of financial position shows total shareholders equity of
P3,150,000 as of December 31, 2016.

What is the book value per share, assuming that the company has only one class of share capital
outstanding consisting of 50,000, P10 par ordinary shares?

A. P10.00
B. P63.00
C. P70.20
D. P73.00

61. Use the same information given in number 60. What is the book value per ordinary share
assuming that the company has two classes of share capital outstanding consisting of the following:
5,000, P100 par value preference shares with a liquidation value of P120 per share and 50,000,
P10 par value ordinary shares?

A. P10.00
B. P51.00
C. P53.00
D. P63.00

62. The Meg Company began operations in January 2013 and reported the following results for
each of its three years of operations.

2014 P520,000 loss; 2015 P80,000 loss; 2016 P1,600,000 profit

At December 31, 2016, Meg Companys capital accounts were as follows:

8% Cumulative Preference Share Capital, P100 par;

50,000 shares authorized, issued and outstanding P5,000,000
Ordinary Share Capital, P10 par;
1,000,000 shares authorized;
750,000 shares issued and outstanding 7,500,000

Meg Company has never paid a cash or bonus issue and there has been no change in its capital
accounts since it began operations in 2014. The corporation law permits dividends only from
retained earnings.

What is the book value of the ordinary share at December 31, 2016?

A. P 9.73
B. P10.00
C. P10.80
D. P11.33

63. Use the same information given in number 62. What is the books value of the ordinary share
at December 31, 2016 assuming that the preference share has a liquidating value of P106 per share?
A. P10.80
B. P10.00
C. P9.60
D. P9.33

64. ABC Corporations performance during the last three years had not been favorable resulting
to a deficit of P950,000 at December 31, 2016. The company, with the approval of the
shareholders, decided to eliminate the deficit through a quasi-reorganization which would be
effected as follows: The companys 200,000, P20 par ordinary share capital originally issued at an
average price of P22 would be reissued with par value of P15.

Immediately after quasi-reorganization, what would be the balance of share premium?

A. P1,400,000
B. P1,000,000
C. P600,000
D. P450,000