How many additional shares were acquired by Beyonce by exercising the remaining stock rights
How many additional shares were acquired by Beyonce by exercising the remaining stock rights
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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Beyonce Company purchased 10,000 shares of Taylor company's ordinary shares at P80 per share in 2021. Beyonce designated the equity investment as at FVPL. Fair value at Dec. 31, 2021 was P100/ share. In 2022, Taylor issued rights to its shareholders to purchase one ordinary share for every five rights plus P70.
Beyonce sold 2,000 stock rights at P10 and exercise the remaining rights by purchasing additional shares. at this date Taylor's ordinary shares are selling at P105 per share.
How many additional shares were acquired by Beyonce by exercising the remaining stock rights?
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