Princess Corp. purchased 100,000 ordinary shares at P80 per share on January 1, 2020. These shares are classified as FA at FVOCI. The entity received100,000 share rights on August 30, 2020 which can be used to purchase 20,000 shares at P90 per share. The shares will expire on January 1, 2021. 1) What amount should be reported on August 30, 2020 as investment in share rights? 2) What is the total cost of the new investment if all of the share rights were exercised?

Princess Corp. purchased 100,000 ordinary shares at P80 per share on January 1, 2020. These shares are classified as FA at FVOCI. The entity received100,000 share rights on August 30, 2020 which can be used to purchase 20,000 shares at P90 per share. The shares will expire on January 1, 2021. 1) What amount should be reported on August 30, 2020 as investment in share rights? 2) What is the total cost of the new investment if all of the share rights were exercised?

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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