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I was watching the video quoted above; for the answer you said Dr purchases $10m Cr $Equity $10m.
Do we go by the assumption that, if the shares for example say had nominal value of $1 we issue 10 million?
Or do we issue based on market trading price?
Also what is difference between market price and options price?
Find the FV of the goods or services, and post Dr Purchases Cr Equity
There will be a share premium but don’t go on about it in this exam!
FV of shares issued / options to buy shares is completely irrelevant.