PROBLEM 23-4 Issuance of Treasury Shares On February 14, 2021 Karen Inc. exchanged 2,000 shares of its P100 par value ordinary shares held in treasury for a patent owned by Omero Co. The treasury shares were acquired in 2020 at a cost of P160,000. At exchange date, Karen's ordinary share was quoted at P110 per share and the patent had a net carrying value on Omero's book of P180,000. Karen should record the patent at a. P160,000 b. P180,000 c. P140,000 d. P220,000

PROBLEM 23-4 Issuance of Treasury Shares On February 14, 2021 Karen Inc. exchanged 2,000 shares of its P100 par value ordinary shares held in treasury for a patent owned by Omero Co. The treasury shares were acquired in 2020 at a cost of P160,000. At exchange date, Karen's ordinary share was quoted at P110 per share and the patent had a net carrying value on Omero's book of P180,000. Karen should record the patent at a. P160,000 b. P180,000 c. P140,000 d. P220,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 8MCQ

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