12. On January 1.2020. Animosity Compony purchased 50000 shares of anotherenfify for P3,800,000. On October 1,2020, frie enfify ieceived 50,000 stock rghtsTrom the investee. Each right entities the holder to acquire one share for P80. hemarket price of investee's stiares wos Pi00 mmediafely before fhe rights were-15Sued and P90 immediotely ofter the rights were issued. On December 1.2020.ihe entity exercised aff stock rights. On Decembe 31,2020, the antity sold 25,000shares at P90per share. The stock rights are not accounted for separately.If the FIFO approach is used.whatis the gain on sale of investment that should berecognized in 20207a. 350.000b. 300,000

Under the FIFO method, the inventory which is purchased first is sold first.

On January1.2020.Animosity Compony purchased 50000 shares of another enfify for P3,800,000. On Ociober 1,2020, fne enfify ieceived 50,000 stock rignts Trom the investee. Eacn right entities the holder to acquire one share for P80. he market price of investee's stares was f100 mmediately tbefore fhe rights were- 1SSued and P90 immediately ofter the righis were issued. On December 1.2020. fhe entify eXercised aff stock rights. On Decembe31,2020, the enfity sold 25,000 shares at P90 per share. The stock rights are not accounted for separately. If the FIFO approach is used. what is the gain on sale of investment ihat shoud be recognized in 20207 a. 350.000

On January1.2020.Animosity Compony purchased 50000 shares of another enfify for P3,800,000. On Ociober 1,2020, fne enfify ieceived 50,000 stock rignts Trom the investee. Eacn right entities the holder to acquire one share for P80. he market price of investee's stares was f100 mmediately tbefore fhe rights were- 1SSued and P90 immediately ofter the righis were issued. On December 1.2020. fhe entify eXercised aff stock rights. On Decembe31,2020, the enfity sold 25,000 shares at P90 per share. The stock rights are not accounted for separately. If the FIFO approach is used. what is the gain on sale of investment ihat shoud be recognized in 20207 a. 350.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

No. 26
On January 1, 2021, Cream Company offered the c share appreciation rights. The terms are predetermined price P100, 10,000 shares, vesting period 3 years and expiration date, December 31, 2023. The share appreciation is to be paid on the date of exercise. The following are the share prices: January 1, 2021 100 December 31, 2021 105 December 31, 2022 95 December 31, 2023 105 How much is the liability for December 31, 2022?
A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of XYZ Co. ordinary shares at P80.50 plus broker’s fee of P500. Received stock rights permitting the purchase of one share at P60 for every four shares owned on September 1. On this date, the rights had a market price of P3 each, and the market price of the stock ex-right was P72 per share. On Nov. 10, exercised 500 rights from the stock purchased March 20. If stock rights are not accounted for separately, determine the carrying value of the investments if 1/3 of the total holdings was sold for P75 a share. Round off answer to 2-decimal places.
Dymamic Litrd. IMakes an Issue of 5,000 equity shares of $ 100 of each at a premium of $ 12.50 per share payable as : (1) $ 12.50 on Application; (2) $ 25.00 on Allotment including premium ; (3) $ 50.00 on First call ; (4) $ 15.00 on Second call; and (5) $ 10.00 on Final call. ; The Application and Allotment moneys are duly received and in addition holders of 2,500 full on allotment. Holders of 100 shares fail to pay the First Call and after due notice their shares are forfeited. The amounts payable on the Second Call (made after the forfeiture) are paid in full except that a holder of 50 shares fails to pay. 75 of the 100 shares forfeited are reissued, credited with $ 90 paid for $ 70 per share. The mew holder pays for these shares in full. The balance of $ 10 per share being treated as Call in Advance. The fiimal call is met in full including the arrears of the Second Call. Show ithe mecessary Jounnal Emtries, imcludiing cash im the Books of Dymamic Ltd.
On January 1, 2020 Excellence Company made various investments in trading securities with the following cost and market value on December 31, 2020: Cost 200,000 800,000 1,000,000 Market value One preference share Two ordinary share Three ordinary share 150,000 950,000 1,100,000 On January 20, 2021, the Two ordinary share is sold for P1,020,000. On December 31, 2021, the remaining trading securities have the following Market value: Market value One preference share Three ordinary share 200,000 1,070,000 Required: a.) Gain on sale on January 20, 2021 b.) Unrealized gain or loss be reported to the Income Statement for the Year- ended December 31, 2021
answer plsss
A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of XYZ Co. ordinary shares at P80.50 plus broker’s fee of P500. Received stock rights permitting the purchase of one share at P60 for every four shares owned on September 1. On this date, the rights had a market price of P3 each, and the market price of the stock ex-right was P72 per share. On Nov. 10, exercised 1,000 rights from the stock purchased March 20. If stock rights are not accounted for separately, how much is the loss if all stock rights were sold for P2.50 a right?
trytyyir fgdbj, @@
Bank Muscat LLC has in issue 500,000 equity shares @ RO .700 baize with a current market value of RO 1.500 per share. It offers a rights issue of 2 for 4 shares at an offer price of OMR 1.200. If only 60% of the offer is subscribed, How much amount the company raised through the right issue OMR 225,000 OMR 180,000 None of these OMR 300,000 S Pr...sal 1