Business
02.08.2022 01:49
103
120
10
Solved by an expert

Bonds with detachable stock warrants were issued by Flack Co. Immediately after

Bonds with detachable stock warrants were issued by Flack Co. Immediately after issue the aggregate market value of the bonds and the warrants exceeds the proceeds. Is the portion of the proceeds allocated to the warrants less than their market value, and is that amount recorded as contributed capital
Show Answers
coolkitty35
coolkitty35
4,6(8 marks)

Yes

Explanation: Bonds with detachable stock warrants could be explained as bonds which gives the holder an added offer of being able to purchase a certain asset a a specified price at a certain time. According to the scenario above, the income generated from the Issuance of the bond falls below the aggregate market value of the bond, In this case, the portion of the proceed allocated to the warrant will be less than their market value which is largely due to the impact of the shortfall in the proceed generated from Issuance of the bond. Due to the shortfall in the allocated proceed, the share of proceed applied to the warrant will be noted as outstanding in the detachable stock warrant.

juniieb
juniieb
4,9(95 marks)

yeah let's talk my insta is grandpafromthe20s

Popular Questions about the subject: Business

Whats the best way to save up money as a 13 year old kid...
Business
24.08.2022 17:58
HELP Please thanks Xxxxxxxxx...
Business
03.01.2022 09:24
Give 10 examples of nonmaterial/nontangible values...
Business
05.11.2022 08:38
What are three things you can do to reduce the risk of financial...
Business
01.05.2023 01:30
If a supermarket increases the price of hamburger meat, what...
Business
07.04.2023 07:04

New questions by subject

4 facts about the American Revolution...
History
15.05.2022 06:27
What are the chemicals for the two strands of nucleotides Answer...
Biology
13.06.2020 02:18
Which of the following was NOT an economic factor of the move...
History
31.01.2023 13:37
What document outlines the powers and duties of the US government?...
Social Studies
13.07.2022 12:27
Please Explain and show answer...
Mathematics
07.01.2022 20:01
#
#
#
#
# #

We expand our knowledge with many expert answers