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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 capitalexcess of par in the amount of:
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