Question
ETK's (12)/(31)/21 Balance Sheet reported the following information: 7.8% registered bonds callable at 107 beginning in 2031 , due 2035 (net of unamortized discount of
ETK's
(12)/(31)/21
Balance Sheet reported the following information:\
7.8%
registered bonds callable at 107 beginning in 2031 , due 2035 (net of unamortized\ discount of
$2
million)
$53
million\ Equity - Stock Warrants
$5
million\ The company disclosed the following information regarding their
7.8%
bonds: "The bonds were\ issued in 2012 at 105 to yield
10%
. Interest is paid semiannually on June 30 and December 31 .\ Each
$1,000
bond was issued with 40 detachable stock warrants, each of which entitles the\ holder to purchase one share of the Company's
$1
par common stock for
$35
, beginning 2022."\ How much did total liabilities increase when the bonds were issued in
2012_()
?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started