On July 1, 2020, Shrek Company exchanged 12,000 shares of its ordinary shares P10 par value held in treasury for a copyright owned by Donkey Company. The treasury shares were acquired in 2018 at a cost of P240,000. At the exchange date, Shrek's ordinary shares were quoted at P26 per share, and the copyright had a net carrying value of P270,000 in Donkey's books. How much should Shrek record the copyright? A.P270,000 B.P312,000 C.P240,000 D.P120,000
On July 1, 2020, Shrek Company exchanged 12,000 shares of its ordinary shares P10 par value held in treasury for a copyright owned by Donkey Company. The treasury shares were acquired in 2018 at a cost of P240,000. At the exchange date, Shrek's ordinary shares were quoted at P26 per share, and the copyright had a net carrying value of P270,000 in Donkey's books. How much should Shrek record the copyright? A.P270,000 B.P312,000 C.P240,000 D.P120,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2020, Shrek Company exchanged 12,000 shares of its ordinary shares P10 par value held in treasury for a copyright owned by Donkey Company. The treasury shares were acquired in 2018 at a cost of P240,000. At the exchange date, Shrek's ordinary shares were quoted at P26 per share, and the copyright had a net carrying value of P270,000 in Donkey's books. How much should Shrek record the copyright?
A.P270,000
B.P312,000
C.P240,000
D.P120,000
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