Question
On January 1, 20X5, Aria Inc. issued 20,000 convertible preferred shares for $960,000. The value of the preferred shares without the conversion option was $44
On January 1, 20X5, Aria Inc. issued 20,000 convertible preferred shares for $960,000. The value of the preferred shares without the conversion option was $44 per share. On September 26, 20X6, a total of 8,000 preferred shares were converted. The fair market value of the conversion option at this date was $5. What amount should be credited to common shares on September 26, 20X6?
a.$352,000
b.$384,000
c.$32,000
d.$392,000
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Management and Cost Accounting
Authors: Colin Drury
10th edition
1473748873, 9781473748910 , 1473748917, 978-1473748873
