12. Foodie accepted several office equipment from a stockholder which originally costed the donor P1,200,000 On the same date the items had aggregated fair value totaling P985,000 The company incurred P30,000 for professional fees and transfer taxes related to the transaction. The amount wa charged to other expenses. How much should be the credited as donated capital? (2 Points) Enter your answer

## Step1: Determine the fair value of the donated items<br />### The fair value of the donated items is given as P985,000.<br /><br />## Step2: Calculate the total cost incurred for professional fees and transfer taxes<br />### The company incurred P30,000 for professional fees and transfer taxes.<br /><br />## Step3: Compute the total amount to be credited as donated capital<br />### The total amount to be credited as donated capital is the fair value of the donated items minus the expenses incurred. Therefore, it is $P985,000 - P30,000$.