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1. How much is the income recognized upon receipt of share rights? a. P0  b. P10,000 c. P20,000  d. P 80,000   2. How much is the investment Income, assuming that all of the share rights are sold at its market value of P5 each? a. P50,000 b. P20,000 c. P10,000 d. P0

1. How much is the income recognized upon receipt of share rights? a. P0  b. P10,000 c. P20,000  d. P 80,000   2. How much is the investment Income, assuming that all of the share rights are sold at its market value of P5 each? a. P50,000 b. P20,000 c. P10,000 d. P0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80 per share. The shares are designated as equity investments at Fair value through other comprehensive income. On October 26, 2020, Paul received 10,000 rights to purchase an additional 2,000 shares at P90 per share. The share rights received had an expiration date of February 1, 2021.

1. How much is the income recognized upon receipt of share rights?
a. P0 
b. P10,000
c. P20,000 
d. P 80,000
 
2. How much is the investment Income, assuming that all of the share rights are sold at its market value of P5 each?
a. P50,000
b. P20,000
c. P10,000
d. P0
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