On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of Siomai Company’s ordinary share, each having a par value of P40 and a market value of P55. There is P40,000 unamortized discount on the bonds and P25,000 paid in capital arising from bond conversion privilege. What amount of gain or loss should Siomai Company recognize in 2016 as a result of the conversion? A. 185k B. 0 C. 300K D. 160K
On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of Siomai Company’s ordinary share, each having a par value of P40 and a market value of P55. There is P40,000 unamortized discount on the bonds and P25,000 paid in capital arising from bond conversion privilege. What amount of gain or loss should Siomai Company recognize in 2016 as a result of the conversion? A. 185k B. 0 C. 300K D. 160K
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of Siomai Company’s ordinary share, each having a par value of P40 and a market value of P55. There is P40,000 unamortized discount on the bonds and P25,000 paid in capital arising from bond conversion privilege. What amount of gain or loss should Siomai Company recognize in 2016 as a result of the conversion?
A. 185k
B. 0
C. 300K
D. 160K
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