On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities to subscribe to new shares at ₱60 per share for every 4 rights held. Prior to issuance of stock...

On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity

securities to subscribe to new shares at ₱60 per share for every 4 rights held. Prior to

issuance of stock rights, the shares were selling at ₱80 per share. How much is the initial

carrying amount of the stock rights?
a. 20,000
b. 40,000
c. 50,000
d. cannot be determined