Question
Tim Howard Gloves issued 5.25% bonds with a face amount of $26 million, together with 8 million shares of its $1 par common stock, for
Tim Howard Gloves issued 5.25% bonds with a face amount of $26 million, together with 8 million shares of its $1 par common stock, for a combined cash amount of $48 million. The fair value of Howard's stock cannot be determined. The bonds would have sold for $20 million if issued separately. For this transaction, Howard should record paid-in capital—excess of par in the amount of --------------.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
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