A Owns 500 ordinary shares of B Company which has several hundred thousand shares publicly traded. These 500 shares were purchased by A in early part of 2019 for 200 per share. On August 20,2019, B distributed 500 rights to A. A was entitled to buy one new share of B ordinary shares at P 180 and two sharerights. On September 1,2019, when the market value of the share was P 203, A exercise Dall the rights and received 250 ordinary shares. How much is the investment income recognized by A upon exercise of the rights?Required to answer. Single choice. P 5,750 P 750 P 0 P11,500
A Owns 500 ordinary shares of B Company which has several hundred thousand shares publicly traded. These 500 shares were purchased by A in early part of 2019 for 200 per share. On August 20,2019, B distributed 500 rights to A. A was entitled to buy one new share of B ordinary shares at P 180 and two sharerights. On September 1,2019, when the market value of the share was P 203, A exercise Dall the rights and received 250 ordinary shares. How much is the investment income recognized by A upon exercise of the rights?Required to answer. Single choice. P 5,750 P 750 P 0 P11,500
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 52P
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A Owns 500 ordinary shares of B Company which has several hundred thousand shares publicly traded. These 500 shares were purchased by A in early part of 2019 for 200 per share. On August 20,2019, B distributed 500 rights to A. A was entitled to buy one new share of B ordinary shares at P 180 and two sharerights. On September 1,2019, when the market value of the share was P 203, A exercise Dall the rights and received 250 ordinary shares.
How much is the investment income recognized by A upon exercise of the rights?Required to answer. Single choice.
How much is the investment income recognized by A upon exercise of the rights?Required to answer. Single choice.
P 5,750
P 750
P 0
P11,500
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