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What is the initial measurement of the rights

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Reference no: EM132915386

Problem 1: Peer Company issued rights to subscribe to new share at P100 per share in the ratio of one new share for every five rights held. The share has a market value of P150 and the right has a market value of P6. If the investor held 8,000 shares acquired at a total cost of P 1,000,000, given that the rights are accounted separately, what is the initial measurement of the rights?

Group of answer choices

a. P 800,000

b. P 1,200,000

c. P 48,000

d. P 240,000

Reference no: EM132915386

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