11. An entity issued P5,000,000 face amount 5-year bonds at :20. Each P1,000 bond was issued with 20 nondetachable share warrants. Each warrant entitled the bondholder to purchase one share of P20 par value for P25. Immediately after issuance, the market value of each warrant was P5. The interest rate is 11% payable annually every December 31. The prevailing market rate of interest for similar bonds without warrants is 12%. The PV of 1 at 12% for 5 periods is 0.57 and the PV of an ordinary annuity of 1 at 12% for 5 periods is 3.60. What amourt should be recorded as increase in equity as a result of the bond issuance? a. 1,170,000 b. 1,000,000 c. 2,000,000 d. 0 12. An entity issued 5.000 convertible bonds with P1,000 lace 1.count per bond. The bonds mature in three years and are issued at i 10. Interest is payable ennully every Deceinber 3! at a nominal 6% interest rate. Each hond is convertible at anytire up to matusi inte :00 shares with par value of P5. It is reliably determined thai the bords would sell only a: P4.600,000 without the conversion privilege. What is the equity component of the original issuance of the convertible bonds? a. 500,000 b. 400,000 c. 900,000 d. 0 13. After recording interest und amortization, an entity converted P5.000,000 of 12% convertible bonds into 50,000 shares of P50) par value. O: the conversion date, the carrying amount of the bonds payable was P6,000,000 the market value of the bonds was 16,500,000, and the share was publicly trading at P150. The entity incurred P100,000 in znection with the conversion. When the bonds were origirally issued, the equity component was recorded PI 00.000. What amount of share premium should be recorded as a result of the conversion? a. 5,000,000 b. 3.500.000 C. 4,900.000 d. 3,400,000 A Tataradita Anunting 11. An entity issued P5,000,000 face amount 5-year bonds at :20. Each P1,000 bond was issued with 20 nondetachable share warrants. Each warrant entitled the bondholder to purchase one share of P20 par value for P25. Immediately after issuance, the market value of each warrant was P5. The interest rate is 11% payable annually every December 31. The prevailing market rate of interest for similar bonds without warrants is 12%. The PV of 1 at 12% for 5 periods is 0.57 and the PV of an ordinary annuity of 1 at 12% for 5 periods is 3.60. What amourt should be recorded as increase in equity as a result of the bond issuance? a. 1,170,000 b. 1,000,000 c. 2,000,000 d. 0 12. An entity issued 5.000 convertible bonds with P1,000 lace 1.count per bond. The bonds mature in three years and are issued at i 10. Interest is payable ennully every Deceinber 3! at a nominal 6% interest rate. Each hond is convertible at anytire up to matusi inte :00 shares with par value of P5. It is reliably determined thai the bords would sell only a: P4.600,000 without the conversion privilege. What is the equity component of the original issuance of the convertible bonds? a. 500,000 b. 400,000 c. 900,000 d. 0 13. After recording interest und amortization, an entity converted P5.000,000 of 12% convertible bonds into 50,000 shares of P50) par value. O: the conversion date, the carrying amount of the bonds payable was P6,000,000 the market value of the bonds was 16,500,000, and the share was publicly trading at P150. The entity incurred P100,000 in znection with the conversion. When the bonds were origirally issued, the equity component was recorded PI 00.000. What amount of share premium should be recorded as a result of the conversion? a. 5,000,000 b. 3.500.000 C. 4,900.000 d. 3,400,000 A Tataradita Anunting