Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are tendered for conversion into 80,000 ordinary shares immediately after an interest payment date. At that time, the market price of the debentures is 104, and the ordinary shares are selling at $14 per share (par value $10). At date of issue, the company recorded Share Premium Conversion Equity of $50,000. The company records the conversion as follows. Bonds Payable 960,000   Share Premium—Conversion Equity 50,000   Share Capital—Ordinary   800,000 Share Premium—Ordinary   210,000 Discuss the propriety of this accounting treatment.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.