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On December 31, 2020, Stephanie Company issued 5,000 of its 8%, 10-year, P1,000 face value bonds with detachable stock warrants at 108. Each bond carried
On December 31, 2020, Stephanie Company issued 5,000 of its 8%, 10-year, P1,000 face value bonds with detachable stock warrants at 108. Each bond carried a detachable warrant for one share of Genesiss ordinary shares at a specified option price of P25 per share. Immediately after issuance, the market value of the bonds without the warrants was quoted at 98.
On December 31, 2020 balance sheet, what amount should Stephanie report as the liability component?
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