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The XL Co. issued 5,000 shares of P50 par preference shares 1.000 detachable warrants at P400,000. The warrants shall enable the holder to purchase 1,000 ordinary shares of P10 par at P25 per share. Immediately after the issuance of the share, the warrants are selling at P20 per share and the market valuc of the preference without the warrants is P60. The amount to be assigned to the share warrants should be: C 30,000 O20,000 C 25.000 O None

The XL Co. issued 5,000 shares of P50 par preference shares 1.000 detachable warrants at P400,000. The warrants shall enable the holder to purchase 1,000 ordinary shares of P10 par at P25 per share. Immediately after the issuance of the share, the warrants are selling at P20 per share and the market valuc of the preference without the warrants is P60. The amount to be assigned to the share warrants should be: C 30,000 O20,000 C 25.000 O None

FINANCIAL ACCOUNTING
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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The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000. The warrants shall enable the holder to purchase 1,000 ordinary shares of P10 par at P25 per share. Immediately after the issuance of the share, the warrants are sclling at P20 per share and the market value of the preference without the warrants is P60. The amount to be assigned to the share warrants should be: O 30,000 C 20,000 C 25.000 O None
Transcribed Image Text:The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000. The warrants shall enable the holder to purchase 1,000 ordinary shares of P10 par at P25 per share. Immediately after the issuance of the share, the warrants are sclling at P20 per share and the market value of the preference without the warrants is P60. The amount to be assigned to the share warrants should be: O 30,000 C 20,000 C 25.000 O None
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