Film out Co. holds 1,000 ordinary shares of Crystal Snow Co. as investment. On Sept 30,20x1, Crystal Snow Co. issues stock rights on a 1-for-1 basis. The stock rights are exercisable until June 30, 20x2. The fair values per stock right are P5 and P6 on Sept 30, 20x1 and Dec 31, 20x1, respectively. The stock rights remain outstanding on Dec 31, 20x1. Provide the entries in 20x1.
Film out Co. holds 1,000 ordinary shares of Crystal Snow Co. as investment. On Sept 30,20x1, Crystal Snow Co. issues stock rights on a 1-for-1 basis. The stock rights are exercisable until June 30, 20x2. The fair values per stock right are P5 and P6 on Sept 30, 20x1 and Dec 31, 20x1, respectively. The stock rights remain outstanding on Dec 31, 20x1. Provide the entries in 20x1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Film out Co. holds 1,000 ordinary shares of Crystal Snow Co. as investment. On Sept 30,20x1, Crystal Snow Co. issues stock rights on a 1-for-1 basis. The stock rights are exercisable until June 30, 20x2. The fair values per stock right are P5 and P6 on Sept 30, 20x1 and Dec 31, 20x1, respectively. The stock rights remain outstanding on Dec 31, 20x1.
Provide the entries in 20x1.
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