What total cost should be recorded for the new shares

Assignment Help Financial Accounting

Reference no: EM132805195

Question - SINCERELY Corporation POSITIONS Company

Sincerely Corporation owned 50,000 ordinary shares of Respectfully Corporation. These 50,000 shares were purchased by Sincerely for P120 per share. On August 30, Respectfully distributed 50,000 share rights to Sincerely. Sincerely was entitled to buy one new share of Respectfully for P100 cash and two of these rights. On August 30, each share had a market value of P130 and each right had a market value of P20. What total cost should be recorded for the new shares that are acquired by exercising the rights?

POSITIONS held the following financial assets as trading investments on December 31, 2020:

100,000 shares of 34 Company nonredeemable preference share capital, par value P75 with a cost of 775,000 and with a fair value of 950,000;

7,000 shares of 35 Company preference share capital, par value P100, subject to mandatory redemption by the issuer at par on December 31, 2020 with a cost of 690,000 and with a fair value of 575,000.

On December 31, 2020, what is the total carrying amount of the investments?

SOAK Company

SOAK Company provided the following data for the current year:

September 1- SOAK received a 600,000 cash dividend from SUN Company in which SOAL owns a 30% interest.

October 1- SOAK received a P60,000 liquidating dividend from UP Company. SOAK owns a 5% interest in UP.

November 15- SOAK owns a 10% interest in WORTH Company, which declared an paid 3,000,000 cash dividend on this date.

What amount should be reported as dividend income for the current year?

Reference no: EM132805195

Questions Cloud

Owasp proactive controls documentation : Explore both the CIS controls documentation and the OWASP proactive controls documentation. What are each system's strengths?

What plan to incorporate into professional development plan : What elements of this course do you plan to incorporate into your professional development plan? What topics were most helpful to review?

Discuss techniques for combining multiple anomaly detection : Discuss techniques for combining multiple anomaly detection techniques to improve the identification of anomalous objects.

Discuss the competitor-based pricing : How Starbucks uses different components of its product to create a customer experience and maintain its brand. Be sure you address the tangible

What total cost should be recorded for the new shares : On August 30, each share had a market value of P130 and each right had a market value of P20. What total cost should be recorded for the new shares

Should internet be considered sixth mode of transportation : Should the Internet be considered the sixth mode of transportation? Why or why not? Internet is a medium of communication but cannot be considered

Define outline of content to meet knowledge objective : The use of PowerPoint technology can be helpful in organizing content you wish to include in your teaching project. Create a 10 slide Power point presentation.

Discuss the issues that must be factored into modal : Discuss the primary considerations and issues that must be factored into modal and carrier selection the primary consideration and issues

What is klone corps cash conversion cycle : Klone Corp $12 million of sales, $3 million of inventories, $3.25 million of receivables, $1.25 million of payables. What is Klone Corps cash conversion cycle

User Account

All Pages