XYZ Inc issued 445 convertible bonds - each at a price of 101.95% of the $1,000 face value. At issuance, similar bonds without the conversion option had a price of 96.01% of the $1,000 face value. The convertible bonds have just been converted. The carrying value of the bonds on the conversion date is $435,300, and the company has paid $12,460 to the bondholders to induce early conversion. Using the book value method and IFRS, how much will the company's common share balance increase with conversion?
XYZ Inc issued 445 convertible bonds - each at a price of 101.95% of the $1,000 face value. At issuance, similar bonds without the conversion option had a price of 96.01% of the $1,000 face value. The convertible bonds have just been converted. The carrying value of the bonds on the conversion date is $435,300, and the company has paid $12,460 to the bondholders to induce early conversion. Using the book value method and IFRS, how much will the company's common share balance increase with conversion?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:XYZ Inc issued 445 convertible bonds - each at a price of 101.95% of the $1,000 face value. At
issuance, similar bonds without the conversion option had a price of 96.01% of the $1,000 face
value. The convertible bonds have just been converted. The carrying value of the bonds on the
conversion date is $435,300, and the company has paid $12,460 to the bondholders to induce early
conversion. Using the book value method and IFRS, how much will the company's common share
balance increase with conversion?
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