Question
On November 16, 2020, Bilbond issued its 10-year, 7% P1,000,000 convertible bonds at 122.The bonds would have sold for P1,154,435 without the conversion feature. The
On November 16, 2020, Bilbond issued its 10-year, 7% P1,000,000 convertible bonds at 122.The bonds would have sold for P1,154,435 without the conversion feature. The effective interest rate of similar bonds without the conversion feature is 5%.
What is the increase in equity on the date of issuance?
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
9th edition
125956455X, 978-1259564550
