Determine the amount to be assigned to the share warrants

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Question - 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 value of the preference without the warrants is P60. Determine the amount to be assigned to the share warrants?

Reference no: EM133065961

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