Question: ANSWER ONLY (LETTER ONLY) BELLICOSE WARLIKE Co. issued 1,000 preference shares with par value of P400 for P540,000. The preference shares included 1,000 share warrants

ANSWER ONLY (LETTER ONLY)

BELLICOSE WARLIKE Co. issued 1,000 preference shares with par value of P400 for P540,000. The preference shares included 1,000 share warrants that entitle the holder to acquire 500 ordinary shares with par value of P200 for P280 per share. The fair values are:

Preference share ex-warrant 440

Warrant 40

The issue price allocated to the share warrants is?

a. 40,000

b. 100,000

c. 45,000

d. 0

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