Question
Bonds with a face amount of $10,000 and a carrying amount of $10,500 are converted into 100 shares of $50 par common stock with $89
Bonds with a face amount of $10,000 and a carrying amount of $10,500 are converted into 100 shares of $50 par common stock with $89 fair value.
Using the market value method, what is the gain on conversion?
The answer is $1,600 but please show computations. Thank you.
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
