4. Nimbus Company owns 8,000 shares of Cloudy Company's ordinary shares at a cost of

P70 per share. Cloudy Company which has 50,000 shares of P50 par value common stock,

declared and issued a 20% stock dividend on November 20, 2016 to be distributed on

January 18, 2016.

After receiving the stock dividend, Nimbus Company sold all the additional shares for

P128,000

a. The dividend income reported in 2016 is

b. The gain (loss) on the sale of the additional stocks in 2017 is:

5. Circle Company owned 30,000 common shares of Sphere Company at a cost of P300,000

In June 11, 2016, Sphere Company issued one stock right for each share of common stock

owned by investors. The rights provided that for each 3 rights held a share of common

stock (P8 par value) could be purchased for P12 cash. When the rights were issued, they

had a fair value of P0.75 each and the common stocks were selling at P14.25 per share.

On December 31, 2016 Circle Company exercised 75% of the rights sand sold the

remaining rights for P0.95 each. Sphere Company's shares were quoted at P12.06

a. The value assigned to the stock right is

b. The initial measurement for the new shares acquired is

c. The gain (loss) on the sale of the remaining rights is