Hi there i was wondering if someone could please assist on how they got these solutions

Multiple Choice Questions 1. Preferred shares are likely to be classified as debt if any of the following conditions exist A. Redemption is contractually required B. Redemption can be forced by the investor c. Terms of the shares are such that redemption is essentially forced, even if the entity is financially sound D. All of the above 2. ABC Inc., a publicly traded company, 100,000 granted stock options on January 1, Year 1 with a total value of $150,000. The opt exercise their options as of year 4. On December 31, Year 1, it is estimated that 80% of the options will fully vest. On December 31st, Year 2 the estimate of the number of options that will fully vest by the end of Year 3 was revised to 50 %. The December 31 Year 2 year-snd accnal required with respect to these stock options would include a compensation expense amount of AS10.000 B. $20,000 C. $30,000 D. $25,000 will vest over a three-year period, and employees may 3. T&T Corp issued convertible subordinated 6% notes payable. At matarity, the debentures may, at the investor's option, be paid out in cash or converted into common shares at the set price of $30/share. Which of the following is correct with regarding to the classification of this note payable? A. This notes payable should be classified as liability. B. This notes payable should be classified as debt with a conversion option C. The interest component of the notes receivable should be classified as debt and the principle amount to be classified as equity. D. This notes payable should be classified as an equity instrument 4. M&M Corp issued an $800,000, 6 % , three year bond for $825,000. The bonds pay interest annually, at each year end. At maturity, the bond can be paid in cash or converted to 60,000 common shares at the investor's option Market analysts have indicated that, another company with a similar risk has issued a bond with the same maturity and interest rate, but without conversion option, for $765,000. What is the value of the conversion option? A. S50,000 B. $35,000 c. $60.000 D. S0 because the conversion opticn is not valuable to investors E. Cannot be detemined because the market interest rate is not known . VB Ld. issued a $6,000,000 coevertible debt, 10 %, due 31 Oct 2015, coevertible into 810,000 common shares at the investor's option. The convertible debt pays interest annually on October 31. On October 31 2008, after VB paid the annual interest on the debt, the company has a balance of net liability at $5,604,790 and contributed capital: common share conversion rights $107,000. On the same day after the interest payment, the company bought back this convertible debt for a price of S$6,020,000, of which $35,000 related to the conversion rights. Which of the following statement about the reparchase is corect? AThe company should recognize a loss of S380.210 for the retirement of bond into its carnings B. The company should credit contributed capital: conversion options for $107,000 C. The company should debit contributed capital: retirement of conversion options for $72,000. D. The company should recognize a gain of $380,210 for the retirement of bond into its earmings. E. None of the above