Question

Presented below is information related to Hale Corporation: Share Capital—Ordinary, P1 par P4,300,000 Share premium—Ordinary 550,000 Share Capital—Preference 8 1/2%, P50 par 2,000,000 Share premium—Preference 400,000 Retained Earnings 1,500,000 Treasury Shares—Ordinary (at cost) 150,000 The total contributed capital related to the ordinary shares is

Answer 1

$4,850,000

Step-by-step explanation:

The computation of the total contributed capital related to the ordinary shares is shown below:

= Ordinary share capital + share premium of ordinary share

= $4,300,000 + $550,000

= $4,850,000

We simply added the ordinary share capital and the share premium of ordinary shares so that the total contributed capital could arrive