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cember 31, 2021, German Corporation issued 5,000 of its 10%, 10-year, face value bonds with nondetachable share warrants at 102. Each bond d two detachable warrants. Each warrant entitles the holder to buy one share man's P20 par value share value ordinary share at P25 per share. Right after Ice, the bond without warrant sells at 96 and each ordinary share sells at 75. e date of issuance, how much is the amount of discount on bonds payable to corded?

cember 31, 2021, German Corporation issued 5,000 of its 10%, 10-year, face value bonds with nondetachable share warrants at 102. Each bond d two detachable warrants. Each warrant entitles the holder to buy one share man's P20 par value share value ordinary share at P25 per share. Right after Ice, the bond without warrant sells at 96 and each ordinary share sells at 75. e date of issuance, how much is the amount of discount on bonds payable to corded?

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 11QE
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On December 31, 2021, German Corporation issued 5,000 of its 10%, 10-year, P1,000 face value bonds with nondetachable share warrants at 102. Each bond carried two detachable warrants. Each warrant entitles the holder to buy one share of German's P20 par value share value ordinary share at P25 per share. Right after issuance, the bond without warrant sells at 96 and each ordinary share sells at 75. On the date of issuance, how much is the amount of discount on bonds payable to be recorded?
Transcribed Image Text:On December 31, 2021, German Corporation issued 5,000 of its 10%, 10-year, P1,000 face value bonds with nondetachable share warrants at 102. Each bond carried two detachable warrants. Each warrant entitles the holder to buy one share of German's P20 par value share value ordinary share at P25 per share. Right after issuance, the bond without warrant sells at 96 and each ordinary share sells at 75. On the date of issuance, how much is the amount of discount on bonds payable to be recorded?
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