(PROB 23-5

EFFECTIVE COM

REQUIREMEN
1 Investment in ANA ordinary share

2 Investmen in Benguet ordinary sh

3 Investment in ANA ordinary share

4 Cash (200 par x 12% x 5000 share

5 MEMO - Received 20000 new AN

a 2-for-1 share split of 10000 orig

6 Cash (8000 x P85-5%)

REQUIREMEN

SMC Prferres shares

Benguet Ordinary shares
Benguet Ordinary shares
ANA Ordinary shares
 (PROB 23-5)
EFFECTIVE COMPANY

REQUIREMENT A
nvestment in ANA ordinary shares 300000
Cash 300000
#
nvestmen in Benguet ordinary shares 120000
Dividend income 120000
#
nvestment in ANA ordinary shares 420000
Cash 420000
#
ash (200 par x 12% x 5000 shares x 1/ 60000
Dividend income 60000
#
MEMO - Received 20000 new ANA ordinary shares as a result of
2-for-1 share split of 10000 original shares.
#
ash (8000 x P85-5%) 646000
Investment in ANA ordinary shares
(8000/20000 x 720000) 288000
Gain on sale of investment 358000

REQUIREMENT B

SHARES COST
5000 1200000
10000 1000000
2000 120000
12000 432000
29000 2752000
 (PROB 23-6)
VIVID COMPANY

1 Investment in Zee preference sahres

Cash
#
2 MEMO - Received 2000 shares as 20% stock divide
original shares. Shares now held, 12000.
#
3 Cash (2000x70)
Investment in Zee ordinary shares
(2000/12000x720000)
Gain on sale
#
4 Investment in Zee preference shares
(5000x70)
Investment in Zee ordinary shares
(5000/10000x600000)
Gain on exchange
#
5 Investment in Zee preference shares
Cash (5000x20)
 (PROB 23-6)
VIVID COMPANY

reference sahres 720000

720000

2000 shares as 20% stock dividend on 10000

hares. Shares now held, 12000.

140000
nt in Zee ordinary shares
000x720000) 120000
20000

reference shares 350000

nt in Zee ordinary shares 300000

000x600000)
50000

reference shares 100000

00x20) 100000