Question 18 Asaved Marked out of 100 THIS MULTIPLE CHOICE QUESTION (MCQ) IS BASED ON THE DOUGLAS COMPANY SCENARIO BELOW: DOUGLAS Company issued a Convertible Bond on 1 January 2019. The following information about the Convertible Bond is available Face Value - $800,000; Life: 4 years; Interest: Annual on 31 December Issued at $97 per $100 Nominal Stated rate (coupon): 3% Assume an effective rate (Yield) of 4% (this is the rate on equivalent non-convertible bonds) Convertible Into: 50,000 Ordinary Shares with a par value of $1.25 each The Present Value (PV) Factor for IN-4 and Yield -4%) is 0.855. The Annuity Factor (N=4 and Yield=4%) 3.83 (use these EXACT figures in your calculations) MCQ DOHTEEN When recording the January 1 2019 transaction, what is the correct journal entry with respect to SHARE PREMIUM - CONVERSION EQUITY Select one O a CREDIT $4,880 b. None of these answers O c. CREDIT $5,450 O d. CREDIT $4,200 O e CREDIT $4405 Clear my choice