What option asset should sc company recognize on february

Assignment Help Financial Accounting

Reference no: EM132795217

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

Reference no: EM132795217

Questions Cloud

What is the net expense of providing governmental services : What is the net expense of providing governmental services (activities) for the year for the City of East Lansing

Identify how the organization can provide audit trails : Identify how the organization can provide audit trails, endpoint anomaly detection and a forensic security capability to ensure a stable security posture.

Determine the total materials variance : The labor used was 11,700 hours at an average rate of $18.50 per hour. Determine the total materials variance

What is the company computed adjusted cost of goods sold : Finished goods inventory, beginning balance $300,000 Work-in-process inventory, What is the company computed adjusted cost of goods sold

What option asset should sc company recognize on february : 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.

Compute adjusted partners capital for dissolution purposes : Total liabilities, P500,000. Na died due to car accident. Compute the adjusted partners' capital for dissolution purposes

Performing financial statement analysis : ACCT 621 Managerial Accounting Assignment Help and Solution, University Canada West - Assessment Writing Service

What should be the initial cost of the new investment : If Parker Company exercised, What should be the initial cost of its new investment assuming the new investment is classified as available for sale?

Find the equation of the line : Directions: Solve the following exercises below. Show all work; solve in terms of Q, PKey: (X, Y) = (Q, P)

User Account

All Pages