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On January 1, 2025, Spinka Company issued $9 million of 20-year, 12% bonds at 104. Each $1,000 bond was issued with 10 detachable stock warrants,
On January 1, 2025, Spinka Company issued $9 million of 20-year, 12% bonds at 104. Each $1,000 bond was issued with 10 detachable stock warrants, each of whic entitled the bondholder to purchase, for $55, one share of Spinka's no par common stock. On January 1, 2025, the market value of each warrant was $7.75. By what amount should Spinka's shareholders' equity increase when the bonds are issued?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
