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6. At December 31, 2019, Skye Inc. had 500,000 common shares outstanding (no preferred shares issued). On July 1, 2020, an additional 50,000 common

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6. At December 31, 2019, Skye Inc. had 500,000 common shares outstanding (no preferred shares issued). On July 1, 2020, an additional 50,000 common shares were issued. Skye also had unexercised stock options to purchase 40,000 common shares at $15 per share outstanding throughout 2020. The average market price of Skye's common shares was $ 20 during 2020. The number of shares that should be used in calculating diluted earnings per share for 2020 is: a) 525,000. b) 535,000. c) 560,000. d) 565,000. 7. On January 1, 2020, Carina Corp. issued eight-year, 3% bonds with a face value of $ 600,000, with interest payable semi-annually on June 30 and December 31. The bonds were sold to yield 4%. Table values are: Present value of 1 for 8 periods at 3% Present value of 1 for 8 periods at 4% Present value of 1 for 16 periods at 1.5% .789 .731 .788 Present value of 1 for 16 periods at 2% .728 Present value of annuity for 8 periods at 3% Present value of annuity for 8 periods at 2% 7.020 7.325 Present value of annuity for 16 periods at 1.5% Present value of annuity for 16 periods at 2% 14.131 13.578 The issue price of the bonds is: a) $ 599,979. b) $ 559,002. c) $ 599,760. d) $ 570,450. 8. On July 1, 2020, Rihanna Corporation called its 4% $5 million convertible bonds for conversion. There was $90,500 of unamortized discount on July 1, 2020. At the time of conversion, the balance in the Contributed Surplus-Conversion Rights was $125,000. On the date of conversion, the bonds fair value was $4,935,000 so the company paid an additional $45,000 to induce the conversion. Assuming ASPE, What amount is recorded under the "Loss on Conversion" account?

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