Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On June 30, 2021, Marc Industries had outstanding $800 million of 8% convertible bonds that mature on June 30, 2022. Interest is payable each year
On June 30, 2021, Marc Industries had outstanding $800 million of 8% convertible bonds that mature on June 30, 2022. Interest is payable each year on June 30 and December 31. The bonds are convertible into 60 million shares of $10 par common stock. At June 30, 2021, the unamortized balance in the discount on bonds payable account was 540 million. On June 30, 2021, half the bonds were converted when Marc's common stock had a market price of $30 per share. When recording the conversion, Marc should credit paid-in capital-excess of par: a. 560 million. b. 580 million. c. $100 million. d. S120 million Please show solution step by step
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started