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On July 2, 2021, Martineau Ltd. issued $6,000,000 (par value), 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2021 with interest
On July 2, 2021, Martineau Ltd. issued $6,000,000 (par value), 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2021 with interest payable quarterly on July 1, October 1, January 1 and April 1. If the bonds had NOT been convertible, they would have sold for 96.1. The bond discount is amortized on a straight-line basis. On April 1, 2022, $1,100,000 of these bonds were converted into 500 no par common shares. Accrued interest was paid in cash at the time of conversion. What is the amount of the unamortized bond discount on April 1, 2022 relating to the bonds that were converted? {Insert your answer in the box below. Your answer should only involve digitsumbers. Do not use a dollar sign ($) or a comma (,) in your answer (the system will give you an error message). For EPS calculations, use 2 decimal places.]
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