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photoshop1234 [79]
2 years ago
3

Bluebell Corporation has outstanding convertible bonds with a face value of $9,000. It has just paid interest on these bonds, an

d the bonds have a book value of $9,500. Each $1,000 bond is convertible into 30 shares of common stock (par value $20 per share). All of the bonds are converted into common stock when the market value of Bluebell's common stock is $25 per share. Under the market value method, what value would be given to additional paid-in capital from bond conversion?
Business
1 answer:
Alexeev081 [22]2 years ago
4 0

Answer:

$900

Explanation:

As provided, we need to use the market value method.

Face value of bonds to be converted = $9,000

Further for each $1,000,

30 shares shall be issued.

Total number of shares to be issued =\frac{9,000}{1,000}\times 30 = 180 shares.

Market value of share = $25 per share

Par value = $20

Additional paid in value for each share = $25 - $20 = $5

Thus, on conversion

Paid in capital = 180 shares \times 20 dollars each = 3,600 dollars

Additional paid-in capital = 180 shares \times $5 each = $900

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<em>The correct option is D) a target</em>

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In business studies, most of the business holders have different goals which can be attained through different key components.

The key components of each goal can be specific as you cannot follow the wrong key components and desire for outcomes which are not related to the key components.

Jayla has a goal to become the leading fitness studio owner of the area, for this she sets up key components in the form of targets for each day that should be accomplished.

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2 years ago
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Answer:

The correct answer is <em>households.</em>

Explanation:

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2 years ago
Natasha has $1000 to open a checking account. She can maintain a monthly balance of $600. She also has a savings account at the
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Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by
vovangra [49]

Answer:

d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.

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As for the information provided,

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Thus, on the provisional basis such claims of $100,000 would have been provided ideally.

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Claims Payable A/c Dr.      $100,000

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