How many additional shares were acquired by Beyonce by exercising the remaining stock rights
How many additional shares were acquired by Beyonce by exercising the remaining stock rights
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 14DQ
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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 P70.
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.
How many additional shares were acquired by Beyonce by exercising the remaining stock rights?
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