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Stonewall Corporation issued $24,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation.

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Stonewall Corporation issued $24,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1, 2020. Assume that the conversion privilege is subsequently exercised immediately after the end of the third year. Assume that at the date of conversion, 30% of any premium or discount has been amortized and the common stock was selling at $150 per share, Which of the following methods definitely does not result in a gain or loss on the conversion of bonds into equity? A. Book value method. B. Market value method, Both A and B Bonly Neither Anor B A only

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