What is the total shareholders equity after the distribution

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David Corporation had the following shareholders' equity accounts before the declaration of bonus issue:

Ordinary Share Capital, P100 par, 20,000 shares - P2,000,000

Issued and outstanding - 100,000

Retained Earnings - 1,000,000

Market Value of the Ordinary share on this date is P150 per share.

Problem 1: Assuming that a 10% bonus issue was declared, what was the amount of retained earnings capitalized?

Problem 2: Assuming that a 20% bonus issues was declared and distributed, what is the total contributed capital after the distribution of the bonus issue?

Problem 3: Assuming that a 20% bonus issues was declared and distributed, what is the total shareholders' equity after the distribution of the bonus issue?

Reference no: EM132888787

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