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ei 18 A ved Markeduto 100 Hog ution THIS MULTIPLE CHOICE QUESTION (MCO) IS BASED ON THE DOUGLAS COMPANY SCENARIO BELOW: DOUGLAS Company inued a

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ei 18 A ved Markeduto 100 Hog ution THIS MULTIPLE CHOICE QUESTION (MCO) IS BASED ON THE DOUGLAS COMPANY SCENARIO BELOW: DOUGLAS Company inued a Convertible tond on January 2010. The following information about the Convertible Bond is available, Face Value - $800,000, Life 4 years, Interest Annual on 31 December . issued at $97 per $100 Nominal Stated rote (coupon) 3% Assume an effective rate (la) of 4x (this is the rate on equivalent non convertible bonds) . Convertible into 50,000 Ordinary Shares with a par value of 125 each The Prosant Value (PV) Factor for Nut and Yield = 4x is 0.466. The Arinulty Factor IN = 4 and viold* 6x6] = 3.65 (use these exact figures in your calculation) MCQ EIGHTEEN When recording the arwary 2010 transaction what is the correct Journal entry with respect to SHARE PREMIUM - CONVERSION TOUTY Select one O CREDIT 34,880 None of these wors O c. CREDIT $1.450 O d.CREDIT 4,200 O CREOIT $4,465 Clear my choice ei 18 A ved Markeduto 100 Hog ution THIS MULTIPLE CHOICE QUESTION (MCO) IS BASED ON THE DOUGLAS COMPANY SCENARIO BELOW: DOUGLAS Company inued a Convertible tond on January 2010. The following information about the Convertible Bond is available, Face Value - $800,000, Life 4 years, Interest Annual on 31 December . issued at $97 per $100 Nominal Stated rote (coupon) 3% Assume an effective rate (la) of 4x (this is the rate on equivalent non convertible bonds) . Convertible into 50,000 Ordinary Shares with a par value of 125 each The Prosant Value (PV) Factor for Nut and Yield = 4x is 0.466. The Arinulty Factor IN = 4 and viold* 6x6] = 3.65 (use these exact figures in your calculation) MCQ EIGHTEEN When recording the arwary 2010 transaction what is the correct Journal entry with respect to SHARE PREMIUM - CONVERSION TOUTY Select one O CREDIT 34,880 None of these wors O c. CREDIT $1.450 O d.CREDIT 4,200 O CREOIT $4,465 Clear my choice

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