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 40,000 - 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 40,000

- internal management time in managing the process of 30,000

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) 311,000

b) 320,000

c) 360,000

d) 332,000