On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities to subscribe to new shares at ₱60 per share for every 4 rights held. Prior to issuance of stock rights, the shares were selling at ₱80 per share. How much is the initial carrying amount of the stock rights? a. 20,000 b. 40,000 c. 50,000 d. cannot be determined
On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities to subscribe to new shares at ₱60 per share for every 4 rights held. Prior to issuance of stock rights, the shares were selling at ₱80 per share. How much is the initial carrying amount of the stock rights? a. 20,000 b. 40,000 c. 50,000 d. cannot be determined
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity
securities to subscribe to new shares at ₱60 per share for every 4 rights held. Prior to
issuance of stock rights, the shares were selling at ₱80 per share. How much is the initial
carrying amount of the stock rights?
a. 20,000
b. 40,000
c. 50,000
d. cannot be determined
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