On May 15, 2024, Baez Co. issued bond with detachable warrants. At the time of the issuance, the company issued $15,000,000 par value 8% bond at 97. The company issued one detachable warrant with each $1,000 par value bond. When the bond was issued, the warrants were selling at $25 each. It is estimated that the fair value of the bonds without the warrants is $14,550,000. What amount should the company debit to the Discount on Bonds Payable? (round calculations to 2 decimal places)
On May 15, 2024, Baez Co. issued bond with detachable warrants. At the time of the issuance, the company issued $15,000,000 par value 8% bond at 97. The company issued one detachable warrant with each $1,000 par value bond. When the bond was issued, the warrants were selling at $25 each. It is estimated that the fair value of the bonds without the warrants is $14,550,000. What amount should the company debit to the Discount on Bonds Payable? (round calculations to 2 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On May 15, 2024, Baez Co. issued bond with detachable warrants. At the time of the issuance, the company issued $15,000,000 par value 8% bond at 97. The company issued one detachable warrant with each $1,000 par value bond. When the bond was issued, the warrants were selling at $25 each. It is estimated that the fair value of the bonds without the warrants is $14,550,000.
What amount should the company debit to the Discount on Bonds Payable? (round calculations to 2 decimal places)
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