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How much is the initial carrying amount of the stock rights

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Problem 1: Scott Co. holds 12,000 shares of Butter, Inc. as investment in equity securities measured at FVOCI. The carrying amount of the investment is ?400,000. On March 31, 2018, scott received 12,000 stock rights to subscribe to new shares at ?24 per share for every 4 rights held. On March 31, 2018, the shares and the stock rights have fair values of ?40 and ?8, respectively. How much is the initial carrying amount of the stock rights?

A. 66,667

B. 80,000

C. 96,000

D. 0

E. Answer not given

Reference no: EM132915522

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