14. On March 4, 20x3, Evan Co. purchased 1,000 shares of LVC common stock (ordinary shares) at P80 per share. On September 26, 20x3, Evan received 1,000 stock rights to purchase an additional 1,000 shares at P90 per share. The stock rights had an expiration date of February 1, 20x4. On September 30, 20x3, LVC's common stock had a market value, ex-rights, of P95 per share and the stock rights had a market value of P5 each. What amount should Evan report on its September 30, 20x3 balance sheet as the cost of its investment in stock rights? a. 4,000 b. 5,000 c. 10,000 d. 0

14. On March 4, 20x3, Evan Co. purchased 1,000 shares of LVC common stock (ordinary shares) at P80 per share. On September 26, 20x3, Evan received 1,000 stock rights to purchase an additional 1,000 shares at P90 per share. The stock rights had an expiration date of February 1, 20x4. On September 30, 20x3, LVC's common stock had a market value, ex-rights, of P95 per share and the stock rights had a market value of P5 each. What amount should Evan report on its September 30, 20x3 balance sheet as the cost of its investment in stock rights? a. 4,000 b. 5,000 c. 10,000 d. 0

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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