On May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032. Twenty detachable stock warrants entitling the holder to purchase for €40 one share of Marly’s ordinary shares €15 par value, were attached to each €1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2022, the fair value of Marly’s shares was €35 per share and of the warrants was €2. On May1, 2022, Marly should record bonds payable at ....
On May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032. Twenty detachable stock warrants entitling the holder to purchase for €40 one share of Marly’s ordinary shares €15 par value, were attached to each €1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2022, the fair value of Marly’s shares was €35 per share and of the warrants was €2. On May1, 2022, Marly should record bonds payable at ....
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 May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032. Twenty detachable stock warrants entitling the holder to purchase for €40 one share of Marly’s ordinary shares €15 par value, were attached to each €1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2022, the fair value of Marly’s shares was €35 per share and of the warrants was €2. On May1, 2022, Marly should record bonds payable at ....
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