On January 1, 2019, N Company had five outstanding ordinary shares. On December 31, 2019, Norton declared dividends on the ordinary shares. The corporation decided to give the ordinary shareholders a choice between receiving a cash dividend of P10,000 per share or a property dividend in the form of a noncash asset. Each noncash asset has a fair value of P12,000. The corporation estimated that 40% of the ordinary shareholders will take the option of the cash dividend and 60% will elect for the noncash asset. How much is the dividends payable on December 31, 2019?
On January 1, 2019, N Company had five outstanding ordinary shares. On December 31, 2019, Norton declared dividends on the ordinary shares. The corporation decided to give the ordinary shareholders a choice between receiving a cash dividend of P10,000 per share or a property dividend in the form of a noncash asset. Each noncash asset has a fair value of P12,000. The corporation estimated that 40% of the ordinary shareholders will take the option of the cash dividend and 60% will elect for the noncash asset. How much is the dividends payable on December 31, 2019?
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 34P
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On January 1, 2019, N Company had five outstanding ordinary shares. On December 31, 2019, Norton declared dividends on the ordinary shares. The corporation decided to give the ordinary shareholders a choice between receiving a cash dividend of P10,000 per share or a property dividend in the form of a noncash asset. Each noncash asset has a fair value of P12,000. The corporation estimated that 40% of the ordinary shareholders will take the option of the cash dividend and 60% will elect for the noncash asset. How much is the dividends payable on December 31, 2019?
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