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On May 1, 2012, Marly Co, issued $500,000 of 7% bonds at 103, which are due on April 30, 2022. Twenty detachable stock warrants entitling
On May 1, 2012, Marly Co, issued $500,000 of 7% bonds at 103, which are due on April 30, 2022. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marly's ordinary shares $15 par value, were attached to each $1,000 bond The bonds without the warrants would sell at 96. On May 1, 2012 the fair value of Marly's shares was $35 per share and of the warrants was $2 On May 1, 2012, Marly should record bonds payable at $494 400 $480 000 $500,000 $515 000
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