The shareholders’ equity section of Manning Co. on December 31, 2018 showed the following:
Ordinary share P10 par, 100,000 shares issued and outstanding 1,000,000
Share Premium on Ordinary shares 500,000
Accumulated Profits 4,000,000
On December 30, 2018, the company declared 20% share dividends to the shareholders of record January 3, 2019 payable on January 31, 2019. Assume that of the share dividends declared, 90% of the shares relate to full shares issued while remainder relate to the fractional shares issued.
Also assume that 3/4 of the fractional shares were exercised at par while the rests were not exercised. How much is the amount of share capital that is credited for the subsequent issuance of full share of the dividends declared in relation to the exercise of the fractional shares?