can someone help me?

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The following information may be relevant in accounting for the quasi reorganization.

· Inventory with a net realizable value of P5,000,000 is currently recorded in the accounts at its cost of P7,000,000.

· Plant assets with a recoverable amount P20,000,000 are currently recorded at P24,000,000 net of accumulated depreciation.

· Unrecorded accounts payable amount to P3,000,000.

· Individual shareholders contribute P5,000,000 to create share premium to facilitate the reorganization. No new outstanding shares pass to the company's shareholders.

· The par value of the ordinary share is reduced from P100 to P50.

· Immediately before these events, the shareholders’ equity section appears as follows.

· Share capital, P100 par value, 500,000 shares P50,000,000

· Share premium 5,000,000

· Retained earnings (deficit) (15,000,000)



Compute the balance of share premium /after) the quasi-reorganization.
 

kirby

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