On October 1, 2020, XYZ, Inc. exchanged 2.000 shares of its P500 value ordinary shares held in treasury for a patent owned by Mars Company. The treasury shares were acquired in 2019 at a cost of P800.000. At the time of the exchange, XYZ's ordinary share was quoted at P550 per share and the patent had a net carrying value on Mars' books of P900,000. At what amount should Jupiter record the patent?

On October 1, 2020, XYZ, Inc. exchanged 2.000 shares of its P500 value ordinary shares held in treasury for a patent owned by Mars Company. The treasury shares were acquired in 2019 at a cost of P800.000. At the time of the exchange, XYZ's ordinary share was quoted at P550 per share and the patent had a net carrying value on Mars' books of P900,000. At what amount should Jupiter record the patent?

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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