q5 How should the issue price of the bonds with non-detachable share warrants be accounted for? A. The proceeds are fully assigned to the bonds. B. the proceeds shall ne assigned first to the warrants, at their market value and the remained to the bonds. C. The proceeds shall be assigned first to the bonds at their market value if sold without he warrants; then the remained of the issue price is assigned to the warrants as part of equity. D. The proceeds shall be allocated to the bonds and to the warrants based on the relative fair values
q5 How should the issue price of the bonds with non-detachable share warrants be accounted for? A. The proceeds are fully assigned to the bonds. B. the proceeds shall ne assigned first to the warrants, at their market value and the remained to the bonds. C. The proceeds shall be assigned first to the bonds at their market value if sold without he warrants; then the remained of the issue price is assigned to the warrants as part of equity. D. The proceeds shall be allocated to the bonds and to the warrants based on the relative fair values
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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q5
How should the issue price of the bonds with non-detachable share warrants be accounted for?
A. The proceeds are fully assigned to the bonds.
B. the proceeds shall ne assigned first to the warrants, at their market value and the remained to the bonds.
C. The proceeds shall be assigned first to the bonds at their market value if sold without
he warrants; then the remained of the issue price is assigned to the warrants as part of equity.
D. The proceeds shall be allocated to the bonds and to the warrants based on the relative fair values
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