On April 1, 2021, Austere Corporation issued $320,000 of 14% bonds at 108. Each $1000 bond was sold with 20 detachable stock warrants, each permitting the investor to purchase one share of common stock for $15. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? $332,800. $0. $257,300. $458 100

On April 1, 2021, Austere Corporation issued $320,000 of 14% bonds at 108. Each $1000 bond was sold with 20 detachable stock warrants, each permitting the investor to purchase one share of common stock for $15. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? $332,800. $0. $257,300. $458 100

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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