Beyonce Company purchased 10,000 shares of Taylor company's ordinary shares at P80 per share in 2021. Beyonce designated the equity investment as at FVPL. Fair value at Dec. 31, 2021 was P100/ share. In 2022, Taylor issued rights to its shareholders to purchase one ordinary share for every five rights plus P75. In 2022, Beyonce sold 2,000 stock rights at P10 and exercise the remaining rights by purchasing additional shares. At this date Taylor's ordinary shares are selling at P105 per share. At December 31, 2022, the FV of equity securities is P110/share. At what amount should this equity investment-FVOCI be reported by Beyonce at December 31 2022?
Beyonce Company purchased 10,000 shares of Taylor company's ordinary shares at P80 per share in 2021. Beyonce designated the equity investment as at FVPL. Fair value at Dec. 31, 2021 was P100/ share. In 2022, Taylor issued rights to its shareholders to purchase one ordinary share for every five rights plus P75. In 2022, Beyonce sold 2,000 stock rights at P10 and exercise the remaining rights by purchasing additional shares. At this date Taylor's ordinary shares are selling at P105 per share. At December 31, 2022, the FV of equity securities is P110/share. At what amount should this equity investment-FVOCI be reported by Beyonce at December 31 2022?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 26E
Related questions
Question
100%
34
Transcribed Image Text:Beyonce Company purchased 10,000 shares of Taylor company's ordinary shares at P80 per share
in 2021. Beyonce designated the equity investment as at FVPL. Fair value at Dec. 31, 2021 was
P100/share. In 2022, Taylor issued rights to its shareholders to purchase one ordinary share for
every five rights plus P75. In 2022,
Beyonce sold 2,000 stock rights at P10 and exercise the remaining rights by purchasing
additional shares. At this date Taylor's ordinary shares are selling at P105 per share. At
December 31, 2022, the FV of equity securities is P110/share.
At what amount should this equity investment-FVOCI be reported by Beyonce at December 31
2022?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT