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On January 1, 2020, a corporation is delinquent on a P3,000,000 note to a bank on which P300,000 of interest has accrued. On the same date, the corporation entered into a restructuring agreement with the bank to issue 100,000 P10 par shares of the corporation to settle the entire obligation.
Problem 1: Determine the increase in additional paid-in capital due to the debt restructuring.
Group of answer choices
Option 1: 2,300,000
Option 2: 300,000
Option 3: 1,000,000
Option 4: 2,000,000
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