Company H engaged in the following stock transactions during 19A:

(a) Purchased 200 shares General Motors stock at $125 per share.

(b) Received 1 right per share to purchase 100 new shares at $115 per share. At this time, the market values per share and per right are $120 and $4, respectively. Prepare the entries for the stock purchase and the receipt of the rights and determine the cost per right