On January 1, 2020, Wildhorse Ltd. issued 870 5-year, 10% 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 12%.

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

Date	Account Titles and Explanation	Debit	Credit
January 1	Cash	enter a debit amount	enter a credit amount
	Bond Payable	enter a debit amount	enter a credit amount
	Contributed Surplus- Conversion Rights	enter a debit amount	enter a credit amount