Question
Armagh Corp, issued bonds with a face amount of $200,000. Each $1,000 bond contained detachable stock warrants for 100 shares of Armagh;s common stock. Total
Armagh Corp, issued bonds with a face amount of $200,000. Each $1,000 bond contained detachable stock warrants for 100 shares of Armagh;s common stock. Total proceeds form the issue amounted to $240,000. The fair vale of each warrant was $2, and the fair value of the bonds without the warrants was $196,000. The bonds were issued at a discount of
A. $40,678
B. $0
C. $4,000
D. $678
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
