. • Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10 common shares. After issuance, similar bonds were sold at 97, and the shares had a fair value of $2.50. . Bianca paid $530,000 in cash to the bondholders to retire the bonds early. On retirement date, the bonds had a carrying value of $489,100 and fair value of $492,370. . Bianca is following ASPE and using the book value method.
. • Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10 common shares. After issuance, similar bonds were sold at 97, and the shares had a fair value of $2.50. . Bianca paid $530,000 in cash to the bondholders to retire the bonds early. On retirement date, the bonds had a carrying value of $489,100 and fair value of $492,370. . Bianca is following ASPE and using the book value method.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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