PT ABC issued at a premium of Rp5.000 a Rp100.000 bond issue convertible into 2.000 ordinary shares (par value Rp40). At the time of the conversion, the unamortized premium is Rp2.000, the market value of the bonds is Rp110.000, and the shares are quoted on the market at Rp60 per share. If the bonds are converted into ordinary shares, what is the amount of share premium to be recorded on the conversion of the bonds? * Rp22.000 Rp32.000 Rp40.000 Rp25.000

PT ABC issued at a premium of Rp5.000 a Rp100.000 bond issue convertible into 2.000 ordinary shares (par value Rp40). At the time of the conversion, the unamortized premium is Rp2.000, the market value of the bonds is Rp110.000, and the shares are quoted on the market at Rp60 per share. If the bonds are converted into ordinary shares, what is the amount of share premium to be recorded on the conversion of the bonds? * Rp22.000 Rp32.000 Rp40.000 Rp25.000

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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