Question: Brock Company issued 100 000 convertible 5 year bonds with a face

Brock Company issued $100,000 convertible 5-year bonds with a face value of $100,000 on January 1, 20X0. The coupon rate on the bonds was 6%, and Brock received $100,000 cash for the bonds. Interest is paid semiannually. The market rate for similar bonds without a conversion factor was 10%. Each $1,000 bond is convertible into 20 shares of Brock Company common stock. At the time of issue of the bonds, Brock common stock sold for $42 per share.
1. How would Brock Company report the issuance of the bonds using U.S. GAAP?
2. How would Brock Company report the issuance of the bonds using IFRS?


View Solution:


Sale on SolutionInn
Sales0
Views61
Comments
  • CreatedFebruary 20, 2015
  • Files Included
Post your question
5000