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KER CorpIssued 150,000 Rights Allowing the Holder to Acquire Common Shares

Question 58

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KER Corp.issued 150,000 rights allowing the holder to acquire common shares in 3 years' time at an acquisition price of $30 per share-the current market price.It takes 5 rights to acquire each share.The corporation received $40,000 for the rights.Assuming all rights are exercised when the market price was $35, prepare journal entries at: announcement date, issuance date and exercise date

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No entry on announce...

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