Bond Company has 50,000 ordinary shares held by Sassa Company. Sassa acquired these 50,000 shares in 2011 at P120 per share. Bond distributed 50,000 stock rights to Sassa on August 30, 2013. Sassa has the option of purchasing one Bond Company share for P90 in cash and two of these rights. Each share had a market value of P130 on August 30, 2013, and each right had a market value of P20. If the rights are not individually accounted for, prepare the entry to record the new shares acquired by exercising the rights

Bond Company has 50,000 ordinary shares held by Sassa Company. Sassa acquired these 50,000 shares in 2011 at P120 per share. Bond distributed 50,000 stock rights to Sassa on August 30, 2013. Sassa has the option of purchasing one Bond Company share for P90 in cash and two of these rights. Each share had a market value of P130 on August 30, 2013, and each right had a market value of P20. If the rights are not individually accounted for, prepare the entry to record the new shares acquired by exercising the rights

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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