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1. Broy Inc. issues $5.0 million worth of 10-year convertible bonds with an annual interest rate of 5% when the market rate is 8%. The

1. Broy Inc. issues $5.0 million worth of 10-year convertible bonds with an annual interest rate of 5% when the market rate is 8%. The bonds are convertible into 250 common shares.

Prepare the initial journal entry to record these bonds under US GAAP and IFRS.

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