During Year 1, Peninsula Corporation acquired, as financial assets at fair value through profit or loss, ordinary shares of RPP Company as follows: No, of Shares Cost Per Share P560 Total Cost P448,000 360,000 Lot Date 800 January 25 April 5 600 B 600 RPP Company effected a 20% bonus issue on February 14, Yrur 1. Stock rights on ordinary shares wcre issued on October 30 Year 1, entitling holders to purchase one new ordinary share at P450 for each ten shares held. On this date, the stock ex-rights were being traded at P620 per share. On November 8, Year 1, Peninsula sold 500 rights that pertained to Lot A. Sales price was P20.00 per right. The corporation paid a brokerage fee of P500 on the sale of the stock rights. Peninsula exercised the remaining rights on November 11, Year 1. Fair value of cach share on December 31 was P650. How much total income from investments shall Peninsula Corporation report during Year 1? P 9,500 P18,020 P27,520 P28,020 а. b. с. d.
During Year 1, Peninsula Corporation acquired, as financial assets at fair value through profit or loss, ordinary shares of RPP Company as follows: No, of Shares Cost Per Share P560 Total Cost P448,000 360,000 Lot Date 800 January 25 April 5 600 B 600 RPP Company effected a 20% bonus issue on February 14, Yrur 1. Stock rights on ordinary shares wcre issued on October 30 Year 1, entitling holders to purchase one new ordinary share at P450 for each ten shares held. On this date, the stock ex-rights were being traded at P620 per share. On November 8, Year 1, Peninsula sold 500 rights that pertained to Lot A. Sales price was P20.00 per right. The corporation paid a brokerage fee of P500 on the sale of the stock rights. Peninsula exercised the remaining rights on November 11, Year 1. Fair value of cach share on December 31 was P650. How much total income from investments shall Peninsula Corporation report during Year 1? P 9,500 P18,020 P27,520 P28,020 а. b. с. d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
No. 21
Transcribed Image Text:During Year 1, Peninsula Corporation acquired, as financial
assets at fair value through profit or loss, ordinary shares of RPP
Company as follows:
No, of Shares
800
600
Cost Per Share
P560
Total Cost
P448,000
360,000
Lot
Date
January 25
600
B
April 5
RPP Company effected a 20% bonus issue on February 14, Yeor
1. Stock rights on ordinary shares were issued on October 30
Year 1, entitling holders to purchase onc new ordinary share at
P450 for each ten shares held. On this date, the stock ex-rights
were being traded at P620 per share.
On November 8, Year 1, Peninsula sold 500 rights that pertained
to Lot A. Sales price was P20.00 per right. The corporation paid
a brokerage fee of P500 on the sale of the stock rights.
Peninsula exercised the remaining rights on November 11, Year
1. Fair value of cach share on December 31 was P650.
How much total
income from investments shall Peninsula Corporation report
during Year 1?
P 9,500
P18,020
P27,520
P28,020
а.
b.
с.
d.
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