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Question - On January 1 of the current year, Platters Company, an investor, held 10,000 shares of Supremes Company, acquired at a total cost of P1,980,000.
On October 1 of the current year, Supremes Company issued rights to subscribe to new stock at P165 per share in the ratio of one share for every five rights held. The share has market value of P209 and the right has a market value of P11 at the time of issuance.
Platters Company did not account for the stock rights separately and subsequently exercise all stock rights during the current year.
What amount should be reported by Platters as investment in Supremes Company at the end of the current year?
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This individual assignment is based on the TerraCycle Inc.
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