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?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
