Renee Company invested in 60,000 shares of another entity for a total cost of P5,500,000 on January 1 of the current year.. During the current year, the entity received 60,000 rights to purchase one share at P80. Five rights are required to purchase the share. At issue date, rights had a market value of P5 each. The entity used the rights to purchased 10,000 additional shares of the investee and allowed the rights not exercised to lapse. What amount was debited to stock rights account to record receipt of stock rights?
Renee Company invested in 60,000 shares of another entity for a total cost of P5,500,000 on January 1 of the current year.. During the current year, the entity received 60,000 rights to purchase one share at P80. Five rights are required to purchase the share. At issue date, rights had a market value of P5 each. The entity used the rights to purchased 10,000 additional shares of the investee and allowed the rights not exercised to lapse. What amount was debited to stock rights account to record receipt of stock rights?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 31P
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Renee Company invested in 60,000 shares of another entity for a total cost of P5,500,000 on January 1 of the current year..
During the current year, the entity received 60,000 rights to purchase one share at P80. Five rights are required to purchase the share.
At issue date, rights had a market value of P5 each.
The entity used the rights to purchased 10,000 additional shares of the investee and allowed the rights not exercised to lapse.
What amount was debited to stock rights account to record receipt of stock rights?
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