Mino Corporation had the following investment at FVTPL at the beginning of the current year: Fair Value XYZ Corporation, 10,000 shares (originally cost P1,000,000) - P1,200,000 DEF Company, 20,000 shares (originally cost P500,000) - 450,000 During the current year, the following transactions occurred: Feb. 28 XYZ Corporation declared a 3-for-2 share split. Apr 31 DEF Company declared a 20% share dividend. The market value of DEF Company on this date is P3.00. June 30 Sold 5,000 shares of DEF Company for P100,000, less brokers fee of P1,000. July 31 Sold 5,000 shares of XYZ Corporation for P135. Sept 30 Received share rights to purchase one share of XYZ Corporation for P100 per share. The company should tender five rights for every share acquired. The market price of XYZ Corporation shares on this date is P140. Oct. 31 Exercise all the share rights from XYZ Corporation. Dec. 31 The market value of the portfolio: XYZ Corporation – P155 per share DEF Company – P36 per share Requirement: 1. How much is the carrying value of the investment at year-end?
Mino Corporation had the following investment at FVTPL at the beginning of the current year:
Fair Value
XYZ Corporation, 10,000 shares (originally cost P1,000,000) - P1,200,000
DEF Company, 20,000 shares (originally cost P500,000) - 450,000
During the current year, the following transactions occurred:
Feb. 28 XYZ Corporation declared a 3-for-2 share split.
Apr 31 DEF Company declared a 20% share dividend. The market value of DEF Company on this date
is P3.00.
June 30 Sold 5,000 shares of DEF Company for P100,000, less brokers fee of P1,000.
July 31 Sold 5,000 shares of XYZ Corporation for P135.
Sept 30 Received share rights to purchase one share of XYZ Corporation for P100 per share. The
company should tender five rights for every share acquired. The market price of XYZ
Corporation shares on this date is P140.
Oct. 31 Exercise all the share rights from XYZ Corporation.
Dec. 31 The market value of the portfolio:
XYZ Corporation – P155 per share
DEF Company – P36 per share
Requirement:
1. How much is the carrying value of the investment at year-end?
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