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Sanchez Sofas, a family-owned corporation, issued 6.75% bonds with a face amount of $12 million, together with 2 million shares of its $1 par value common stock, for a combined cash amount of $22 million. The market value of Sanchez's stock cannot be dete

Sanchez Sofas, a family-owned corporation, issued 6.75% bonds with a face amount of $12 million, together with 2 million shares of its $1 par value common stock, for a combined cash amount of $22 million. The market value of Sanchez's stock cannot be determined. The bonds would have sold for $9 million if issued separately. Sanchez should record paid-in capital - excess of par on the transaction in the amount of:

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Answer #1

step 1) 22-9= 13 million

step 2) 13-2= 11 answer

answered by: anonymous
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Sanchez Sofas, a family-owned corporation, issued 6.75% bonds with a face amount of $12 million, together with 2 million shares of its $1 par value common stock, for a combined cash amount of $22 million. The market value of Sanchez's stock cannot be dete
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