9.

What is the net oain or loss

on asset disposals for 2016?
A.P12,OOO netiain
B. P9,9OO net olin
C. P2,1OO net i6ss ,
D. P12,000 net loss

10.
y*1H"?;J:fr?i"k value or Pandav corporation's property,
pranr, and equipmenr ar
A. p6,135,933 B. p6,140,433 c. p6,10g,333 D. p6,117,033

PROBLEM NO.3

During May 2015' GUADALUPF, INc.

was organized with goo,o0o authorized
value ordinary shares, ancl go,doo shares of p10 par
oi itr
throug h December r r, zoi i,-wiipii,soo. ..oii;,v;#; were issued for p990,000. Net income

on July 3' 2015' Guadalupe issued 15o,o0o

dividend was declared on oaoG.li of its ordinary shares for p1,g75,000. A 5olo
zo'ra,ano GrJ'o-n rvor",,ber 6, 2ol6,to share
record on ocbber 23, 2016' rni sharehorders of
declaration date' Guadarupet nli inlor* yil; oiffiJainary shares was prr per share on the
mltrct
roitrre tiir ".i*r December 31, 2016, was p105,000.
During ZOL7, Guadalupe had the following
transactions: ,
1' In February' Guadalupe reacquired 9,000 of its ordrnary p9
uses the cost method to account for shares for per share. Guadalupe
treasury shares.
2' In June, Guadarupe sord 4,500 cf its treasury shares fbr p12 per.share.
3' In september' each shareholder was issued (for each share
addiuonal ordinary shares ror p1s per held) one right to purchase t*o
sniie.tinJiir,t expire on oecember 31, 2oL7.
4' rishts issues were ev.ercised when the
*Sifi?r'*3|j. markervalue of the ordinary share

s' issues were o(ercised when the market

Ha}:f*TIiil?,333#hts varue or the ordinary

6' On December 15, declared its first cash dividend to shareholders

-Gtrac"ilupe
share' payable on January i0, ,0i8, to snaretroroeis or recor,J on of p0.30 per
December 31, 2017.
7 ' on December 21, in accordance with the applicable
law, Guadalupe formally retirecl 3,000 of
its treasury shares and had tt., rerert
ordinary share was p16 per- sfrare-on tti an unissued basis. The market value of the
this date.
8. Net income for 2017 was p240,000.

11' what are the balances of the following

Ordinary equty accounLs
r
on December 31, 201.s?
Share Caoital Share Premium
A. Retained Earninos
P900,000 P90,000
B. P37,500
P990,000 PO
c. P37,500
P990,000 P37,S00
D. PO
P900,000 P37,500 Pgo/000