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On January 1, 2010, Smith, Inc. issued $1,000,000, 10%, 5-year convertible bonds. The bonds were issued for $1,081,109 and each bond is convertible into 10
On January 1, 2010, Smith, Inc. issued $1,000,000, 10%, 5-year convertible bonds. The bonds were issued for $1,081,109 and each bond is convertible into 10 shares of $0.50 par value common stock. The bonds are converted on January 1, 2012. The unamortized bond premium is $52,421 on that date. What is the book value of the common stock issue on conversion?
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