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A company issued convertible bonds with a par value of $1,000,000, receiving $1,200,000. The market value of the conversion option is $300,000. Under international standards

A company issued convertible bonds with a par value of $1,000,000, receiving $1,200,000. The market value of the conversion option is $300,000. Under international standards (IFRS), bond debt will be recognized for: a. $900,000, since equity of $300,000 will be recognized

b. $1,000,000, since equity of $200,000 will be recognized

c. $1,200,000, since equity will not be recognized d. $1,200,000 debt plus $300,000 equity.

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