Reference no: EM132775595
On February 1, 2019, SC Company enters into a contract with San Miguel Corp. that gives SC Company the right to sell, and San Miguel Corp. the obligation to buy the fair value of 2,000 shares of SC Company's own ordinary share outstanding as of January 31, 2020 at a strike price of P196,000 (P98 per share) on January 31, 2020, if SC Company exercises the right. The contract will be settled net in cash, however, if SC Company does exercise the right, no payment will be made.
Below is pertinent relevant information:
2/1/2019 12/31/2019 1/31/2020
Market price per share P100/share P95/share P95/share
Fair value of options P10,000 P8,000 P6,000
Problem 1: What option asset should SC Company recognize on February 1, 2019?
Group of answer choices
a. None
b. P10,000
c. P5,000
d. P8,000
|
Describe accounting treatment by hospitals and health care
: Describe the accounting treatment by hospitals and health care organizations for each of the Contractual adjustments and Uncollectible accounts
|
|
Prepare the journal entries for ellis company
: Prepare the journal entries for Ellis Company for the transactions. Ellis Company purchased 50 Jones Company 5%, 8-year, $1,000 bonds for $50,000.
|
|
Determine how much cash should quito receive
: Determine How much cash should Quito receive? Pedro, Quito, Romeo and Sixto are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21.
|
|
Find how much total interest austal ship needs to pay
: How much total interest Austal Ship needs to pay for A$2.89 millions in three years of the loan period? (enter the whole number without sign or symbol)
|
|
Find what option asset sc company recognize on february
: Find What option asset should SC Company recognize on February 1, 2019? On February 1, 2019, SC Company enters into a contract with San Miguel Corp.
|
|
What should be the initial cost of new investment on dec
: Parker paid P3 for each option shares. What should be the initial cost of its new investment assuming the new investment is classified as available for sale?
|
|
Find what amount of derivative asset parker co recognize
: Find What amount of derivative asset should Parker Company recognize on December 31, 2019? On December 15, 2019, Parker Company entered into call option control
|
|
List of pandemic and epidemic diseases
: When there is a disease outbreak, it is important to understand if it is a contained issue or if it has become an epidemic or pandemic. There may be an outbreak
|
|
Develop a clear understanding of measures
: Develop a clear understanding of measures needed to ensure coordination between public health and law enforcement agencies, and between federal and state.
|