On January 1, 2020, Sandhill Ltd. issued 800 5-year, 9% convertible bonds at par of $ 1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $ 6. Similar straight bonds carry an interest rate of 11%.

Calculate the PV of the debt component by itself. Calculate using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel function PV.

How should Sandhill record the issuance if it follows IFRS? Use the amount you arrived at in part (a) using a financial calculator or Excel.

Cash Dr 800000 Bonds payable Contributed surplus

Please write out a detailed explanation. Please and thanks!