How much investment income is recognized by Beyonce on the sale of 2,000 stock rights?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
How much investment income is recognized by Beyonce on the sale of 2,000 stock rights?
Transcribed Image Text: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. How much investment income is recognized by Beyonce on the sale of 2,000 stock rights?
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