Gall Corporation paid dividends of P500,000 and P1,600,000 at the...

Image transcription text

Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022, respectively. The corporation has not paid any other dividends since its organization on January 1, 2021. The outstanding shares are 50,000, 12% preference shares, par P100 and 80,000 ordinary shares, par P50. The company has 20,000 ordinary shares in the treasury reacquired at 60 per share. If preference shares are non-cumulative but participating, how much cash dividends shall the ordinary shareholders will receive in 2022? 640,000 600,000 1,000,000 360,000

... Show more

Image transcription text

On December 31, 2017, Entity X acquired Ms. Leading Corporation's P1,000,000 notes for P927,880. The market interest rate at that time was 12%. The stated interest rate was 10%, payable annually. The notes mature in five years and classified as financial asset at amortized cost. At December 31, 2019, the note is considered credit-impaired. Entity X determined that it was probable that the issuer would pay back only P600,000 of the principal at maturity. At December 31, 2020, because of the improvement in the credit rating of Ms. Leading, Entity X reassessed the collectibility of the note and now expects to collect P900,000 from Ms. Leading at maturity date. The impairment loss to be recognized in 2019 is P284,720 O P332,740 O P572,920 O P524,900

... Show more