No. 20 During Year 1, Peninsula Corporation acquired, as financialassets at fair value through profit or loss, ordinary shares of RPP"Companyas follows:Cost Per ShareP560600Total CostNo, of Shares800LotDateP448,000360,000AJanuary 25BApril 5600RPP Company effected a 20% bonus issuc on February 14, Yenr1. Stock rights on ordinary shares werc issued on October 30.Year 1, entitling holders to purchase one new ordinary share atP450 for each ten shares hcld. On this date, the stock ex-rightswere being traded at P620 per share.On November 8, Year 1, Peninsula sold 500 rights that pertainedto Lot A. Sales price was P20.00 per right. The corporation paida brokerage fee of P500 on the sale of the stock rights.Peninsula exercised the remaining rights on November 11, Year1. Fair value of cach share on December 31 was P650.How .many new ordinary shares of RPP were acquired byPeninsula Corporation through the excrcise of the rights?а.168 shares140 shares118 sharesb.с.d. .106 shares

Answered: Image /qna-images/answer/50051906-7e50-4718-a55d-6acbef31d249.jpg

During Year 1, Peninsula Corporation acquired, as financial ssets at fair value through profit or loss, ordinary shares of RPP "Company as follows: Cost Per Share P560 600 Total Cost Lot January 25 B No, of Shares 800 600 Date P448,000 360,000 A April 5 RPP Company effected a 20% bonus issue on February 14, Yeur 1. Stock rights on ordinary shares were issued on October 30 Year 1, entitling holders to purchase onc new ordinary share at P450 for each ten shares held. On this date, the stock cx-rights were being traded at P620 per share. On November 8, Year 1, Peninsula sold 500 rights that pertained to Lot A. Sales price was P20.00 per right. The corporation paid a brokerage fee of P500 on the sale of the stock rights. Peninsula exercised the remaining rights on November 11, Year 1. Fair value of cach share on December 31 was P650. How .many new ordinary shares of RPP were acquircd by Peninsula Corporation through the cxercise of the rights? а. 168 shares b. 140 shares 118 shares с. d. . 106 shares

During Year 1, Peninsula Corporation acquired, as financial ssets at fair value through profit or loss, ordinary shares of RPP "Company as follows: Cost Per Share P560 600 Total Cost Lot January 25 B No, of Shares 800 600 Date P448,000 360,000 A April 5 RPP Company effected a 20% bonus issue on February 14, Yeur 1. Stock rights on ordinary shares were issued on October 30 Year 1, entitling holders to purchase onc new ordinary share at P450 for each ten shares held. On this date, the stock cx-rights were being traded at P620 per share. On November 8, Year 1, Peninsula sold 500 rights that pertained to Lot A. Sales price was P20.00 per right. The corporation paid a brokerage fee of P500 on the sale of the stock rights. Peninsula exercised the remaining rights on November 11, Year 1. Fair value of cach share on December 31 was P650. How .many new ordinary shares of RPP were acquircd by Peninsula Corporation through the cxercise of the rights? а. 168 shares b. 140 shares 118 shares с. d. . 106 shares

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 17E

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