The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: • Professional fees of P40,000. • Internal...

The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue:
• Professional fees of P40,000.
• Internal management time in managing the process of P30,000.

These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%.

In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be


A. P332,000 B. P320.000 C.  P360,000 D.  P311,000