Question

Denden Company was organized on January 1, 2020, at which date it issued 300,000 ordinary shares of P6 par value at P13 per share. The following are the additional equity transactions that occurred during the year: - Profit for the year amounts to P975,000. - Declared and paid cash dividends amount to P225,000. - On January 10, 2020, the Company purchased 9,000 treasury shares at P12 per share. - On December 31, 2020, the Company sold 4,500 treasury shares at P8 per share and retired the remaining treasury shares. The company uses the cost method of accounting for treasury shares. What is the total shareholders' equity on December 31, 2020?

          Denden Company was organized on January 1, 2020, at which date it issued 300,000 ordinary shares of P6 par value at P13 per share. The following are the additional equity transactions that occurred during the year:
- Profit for the year amounts to P975,000.
- Declared and paid cash dividends amount to P225,000.
- On January 10, 2020, the Company purchased 9,000 treasury shares at P12 per share.
- On December 31, 2020, the Company sold 4,500 treasury shares at P8 per share and retired the remaining treasury shares.
The company uses the cost method of accounting for treasury shares. What is the total shareholders' equity on December 31, 2020?

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