On July 16, 2021, Habagat Company acquire 1,000 ordinary shares of Ondoy Company at P42 per share plus broker's fees of P900. Ondoy ordinary shares are traded and were primarily held by Habagat for profit taking opportunities. Ondoy declared and issued a stock dividend of one Ondoy preference share for every 10 ordinary shares held. Market values per share of the ordinary and preference are P 40 and P 100, respectively.
On July 16, 2021, Habagat Company acquire 1,000 ordinary shares of Ondoy Company at P42 per share plus broker's fees of P900. Ondoy ordinary shares are traded and were primarily held by Habagat for profit taking opportunities. Ondoy declared and issued a stock dividend of one Ondoy preference share for every 10 ordinary shares held. Market values per share of the ordinary and preference are P 40 and P 100, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much is the dividend revenue recognized by Habagat?
A. P0
B. P4,000
C. P10,000
D. P42,000
Transcribed Image Text:D. On July 16, 2021, Habagat Company acquire 1,000 ordinary shares of Ondoy Company at P42 per share plus broker's
fees of P900. Ondoy ordinary shares are traded and were primarily held by Habagat for profit taking opportunities.
Ondoy declared and issued a stock dividend of one Ondoy preference share for every 10 ordinary shares held. Market
values per share of the ordinary and preference are P 40 and P 100, respectively.
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