On December 1, 2010, Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share’s fair value was P35 per share. The share was...

On December 1, 2010, Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share’s fair value was P35 per share. The share was originally issued for P25 per share. By what amount would this donation cause total shareholders’ equity to decrease?

a. P70,000 c. P20,000 b. P50,000 d. P 0