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Use excel to show solutions Show good accounting form 3. Guess Corporation purchased 50,000 ordinary shares on January 2, 2019 to be held for trading.
Use excel to show solutions
Show good accounting form
3. Guess Corporation purchased 50,000 ordinary shares on January 2, 2019 to be held for trading. Guess received a share dividend of 15% on March 31, 2019 when the market price of the share is P40. On December 31, 2019, Guess paid a cash dividend of P8 per share. On December 31, 2019 Income Statement of Guess Corporation, what amount should be reported as Dividend Income? 4. On December 20, 2018, Ball Corporation purchased 30,000 shares of Pencil Company's shares at P100 each and classified them as trading securities at the time of acquisition. On December 31, 2018, Pencil Company's shares are selling at P125 per share. On February 1, 2019, Ball received 30,000 rights entitling it to purchase at P130 per share one additional share of Pencil for each 10 shares then held. On that date, Pencil's shares had a market value of P145 and each right had a market value of P5.00 on the date of issue. Required: a.) How much should the share rights be recorded on February 1, if it is accounted for separately? b) If all the rights are exercised, how much should be recorded as the total cost of the new investment through the exercise of share rights
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