share of D Company for every 4 C Company shares held. The entity had 100,000 C Company shares which have a market price of 50 per share on December 1. The market price of D Company share was P 10. What amount should be reported as dividend income for the current year? a. 1,650,000 b. 1,050,000 c. 850,000 d. 250,000 61. Gizelle Company owned 50,000 shares of another entity. These 50,000 shares were originally purchased for P 100 per share. On October 1, 2014, the investee distributed 50,000 rights to the entity. The entity was entitled to buy one new share for P 140 and five of these rights. On October 1, 2014, each share had a market value of 150 and each right had a market value of 10. On December 31, 2014, the entity exercised all rights. The stock rights are accounted for separately and measured initially at fair value. What total cost should be recorded for the new shares that are acquired by exercising the rights? a. 1,400,000 b. 1,900,000 c. 1,650,000 d. 1,000,000 62. Francoise Company issued rights to subscribe to its stock, the ownership of 4 shares entitling the shareholders to subscribe for 1 share at 100. An investor owned 50,000 shares with total cost of 5,000,000. The share is quoted right on at 125. The stock rights are accounted for separately and measured initially at fair value. What is the cost of the new investment assuming all of the stock rights are exercised by the investor? a. 1,500,000 b. 1,250,000 c. 1,562,500 d. 1,450,000