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On May 1, Kreal Corp. issued $2 million of 20-year, 20 bond had a detachable warrant eligible for the purchase of one share of Kreal on stock had llowing market values: pond without warrant int on stock, $50 par mount should Kreal credit to premium on bonds payable? $1,040 20 56

On May 1, Kreal Corp. issued $2 million of 20-year, 20 bond had a detachable warrant eligible for the purchase of one share of Kreal on stock had llowing market values: pond without warrant int on stock, $50 par mount should Kreal credit to premium on bonds payable? $1,040 20 56

FINANCIAL ACCOUNTING
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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[40] On May 1, Kreal Corp. issued $2 million of 20-year, 10% bonds for $2,120,000. Each $1,000 bond had a detachable warrant eligible for the purchase of one share of Kreal's $50 the common stock had the following market values: 10% bond without warrant Warrant Common stock, $50 par What amount should Kreal credit to premium on bonds payable? $1,040 20 56
Transcribed Image Text:[40] On May 1, Kreal Corp. issued $2 million of 20-year, 10% bonds for $2,120,000. Each $1,000 bond had a detachable warrant eligible for the purchase of one share of Kreal's $50 the common stock had the following market values: 10% bond without warrant Warrant Common stock, $50 par What amount should Kreal credit to premium on bonds payable? $1,040 20 56
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