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The equity component of a compound financial instrument is determined A. by allocating the issue price to the liability and equity components based on their relative fair values. B. by allocating the equity component its fair value, O c. by deducting the fair value of the liability component without the equity feature from the net proceeds from the issuance of the compound instrument O D. by multiplying the no. of shares at its FMV O E. By multiplying the no. of shares at its par value

The equity component of a compound financial instrument is determined A. by allocating the issue price to the liability and equity components based on their relative fair values. B. by allocating the equity component its fair value, O c. by deducting the fair value of the liability component without the equity feature from the net proceeds from the issuance of the compound instrument O D. by multiplying the no. of shares at its FMV O E. By multiplying the no. of shares at its par value

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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The equity component of a compound financial instrument is determined O A. by allocating the issue price to the liability and equity components based on their relative fair values. B. by allocating the equity component its fair value, O c. by deducting the fair value of the liability component without the equity feature from the net proceeds from the issuance of the compound instrument D. by multiplying the no. of shares at its FMV O E. By multiplying the no. of shares at its par value
Transcribed Image Text:The equity component of a compound financial instrument is determined O A. by allocating the issue price to the liability and equity components based on their relative fair values. B. by allocating the equity component its fair value, O c. by deducting the fair value of the liability component without the equity feature from the net proceeds from the issuance of the compound instrument D. by multiplying the no. of shares at its FMV O E. By multiplying the no. of shares at its par value
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