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Please help. Thank you! Raimer Corp. has 400,000 shares of $20 par value common stock outstanding throughout 202. In addition, the corporation has 500,$1,000,5% bonds
Please help. Thank you!
Raimer Corp. has 400,000 shares of $20 par value common stock outstanding throughout 202. In addition, the corporation has 500,$1,000,5% bonds outstanding that were issued at par in 200. Each $1,000 bond is convertible into thirty 30 ) shares of common stock. During 202, the corporation earned $600,000 of net income. The tax rate was 30%. Assume that the bonds were issued at a premium, instead of being issued at par. Assume that 100 of the bonds were converted to common stock in 203. On the conversion date, the bonds had a book value of $103,000. Record the conversion. SHOW YOUR CALCULATIONS Step by Step Solution
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