QUESTION 30 What does applying the incremental (residual) method of accounting for convertible bonds involve? a. The proceeds of the bond b. A gain on the sale of the bond is Oc are allocated based on the realized for the difference The option is valued at the relative market values of the between the sales proceeds and difference between the straight bond and the the fair value of the bond sales proceeds and the conversion option without the conversion option market value of an equivalent bond without the option d. The bond is recorded at the maturity value of the obligation and the conversion option is valued using an option pricing model