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On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be classified as nontrading through other comprehensive income.                                                                  On September 30, 2021, the entity received 5,000 shares rights to purchase one (1) new share at a cost per share of P75 for every two (2) share rights. The share rights had an expiration date of February 1, 2022.                                           On September 30, 2021, each share had a market value of  P95 and the share rights had a market value of P10.                                  How much is the cost/purchase price of new shares that are acquired by exercising all the rights on September 30, 2021?

On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be classified as nontrading through other comprehensive income.                                                                  On September 30, 2021, the entity received 5,000 shares rights to purchase one (1) new share at a cost per share of P75 for every two (2) share rights. The share rights had an expiration date of February 1, 2022.                                           On September 30, 2021, each share had a market value of  P95 and the share rights had a market value of P10.                                  How much is the cost/purchase price of new shares that are acquired by exercising all the rights on September 30, 2021?

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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On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be classified as nontrading through other comprehensive income.                                                                 

On September 30, 2021, the entity received 5,000 shares rights to purchase one (1) new share at a cost per share of P75 for every two (2) share rights. The share rights had an expiration date of February 1, 2022.                                          

On September 30, 2021, each share had a market value of  P95 and the share rights had a market value of P10.                                 

How much is the cost/purchase price of new shares that are acquired by exercising all the rights on September 30, 2021?                  

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