Find what amount should be credited to share premium

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During 2026, Grab Food issued for P 110 per share, 15,000 convertible preference shares of P 100 par value. One preference share may be converted into three ordinary shares of P 25 par value at the option of the preference shareholder.

On December 31, 2026, 80% of the preference shares were converted into ordinary shares. The market value of the ordinary share at the conversion date was P 40.

Problem 1: What amount should be credited to share premium - ordinary shares as a result of conversion?

Reference no: EM132736761

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