Bondholders of Balm Co. converted their bonds into 90,000 shares of $5 par value common stock....
|
Select one:
a. $325,000
b. $348,000
c. $302,000
d. $798,000
Homework Answers
c. $302,000
| Face value of bonds | 775000 | |||
| Converted valueof bonds(90000*5) | 450000 | |||
| 325000 | ||||
| But there is already an amortized discount of $23000 | ||||
| So the additional paid in capital = 325000 - 23000 | ||||
| = $302000 | ||||
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Bondholders of Balm Co. converted their bonds into 90,000 shares
of $5 par value common stock....
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