Question: pls help me answer this Problem 16-10 (AICPA Adapted) Adam Company owned 50,000 ordinary shares held for trading. The 50,000 shares were purchased for P120

pls help me answer this

Problem 16-10 (AICPA Adapted) Adam Company owned 50,000 ordinary shares held for trading. The 50,000 shares were purchased for P120 per share. During the year, the investee distributed 50,000 share rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be recorded as cost of the new shares acquired by exercising the rights? a. 2,250,000 b. 3,250,000 c. 3,050,000 d. 5,500,000

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