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Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5 June 15 Bought 4,000 ordinary shares, P100 par, at P88. Received 10% bonus issue. Received P4 cash dividend for each ordinary August 31 share. Received stock rights to buy one new share at P100 for every 5 shares held. Market value of stock ex-right, P156. Sold all stock rights at P4 per right. October 10 November 15 What is the revised cost per share after receipt of the bonus issue? P75 а. b. P80 P85 с. d. P90

Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5 June 15 Bought 4,000 ordinary shares, P100 par, at P88. Received 10% bonus issue. Received P4 cash dividend for each ordinary August 31 share. Received stock rights to buy one new share at P100 for every 5 shares held. Market value of stock ex-right, P156. Sold all stock rights at P4 per right. October 10 November 15 What is the revised cost per share after receipt of the bonus issue? P75 а. b. P80 P85 с. d. P90

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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No. 23
Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5 June 15 Bought 4,000 ordinary shares, P100 par, at P88. Received 10% bonus issue. Received P4 cash dividend for each ordinary August 31 share. Received stock rights to buy one new share at P100 for every 5 shares held. Market value of stock ex-right, P156. Sold all stock rights at P4 per right. October 10 November 15 What is the revised cost per share after receipt of the bonus issue? P75 а. b. P80 P85 с. d. P90
Transcribed Image Text:Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5 June 15 Bought 4,000 ordinary shares, P100 par, at P88. Received 10% bonus issue. Received P4 cash dividend for each ordinary August 31 share. Received stock rights to buy one new share at P100 for every 5 shares held. Market value of stock ex-right, P156. Sold all stock rights at P4 per right. October 10 November 15 What is the revised cost per share after receipt of the bonus issue? P75 а. b. P80 P85 с. d. P90
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