On July 1, 2016, A Corp sells $400,000 13%bonds at 106. Each $1,000 bond carries 15warrants, and each warrant allows the holderto acquire one share of $10 par valuecommon stock for $25 per share. Immediatelyfollowing the issuance of the securities, thebonds are quoted at 101 ex rights, and thewarrants are quoted at $3.50 each.note: do not round allocation % duringcalculation.What value should be assigned to paid-in-capital: stock warrants on the date ofissuance?$22,039.62$24,000.00$20,950.59$21,000.00

Step 1 A bond is a fixed income instrument that represents a loan made by an investor to a borrower.

Answered: capital: stock Warrants саpta štočk…

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capital: stock Warrants саpta štočk issuance? $22,039.62 $24,000.00 $20,950.59 $21,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On July 1, 2016, A Corp sells $400,000 13%
bonds at 106. Each $1,000 bond carries 15
warrants, and each warrant allows the holder
to acquire one share of $10 par value
common stock for $25 per share. Immediately
following the issuance of the securities, the
bonds are quoted at 101 ex rights, and the
warrants are quoted at $3.50 each.
note: do not round allocation % during
calculation.
What value should be assigned to paid-in-
capital: stock warrants on the date of
issuance?
$22,039.62
$24,000.00
$20,950.59
$21,000.00

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