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What total cost should be recorded for the new shares

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Question - Bern Company owned 50,000 ordinary shares held for trading. These 50,000 shares were purchased for P120 per share. During the year, the investee distributed 50,000 share rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What total cost should be recorded for the new shares that are acquired by exercising the rights?

Reference no: EM132832195

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