On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 102, and the warrants had a fair value of $8.Allocate the cash received between the different securities using the proportional method. O a. Allocation to Bonds $1,035.000 O b. Allocation to Bonds $1,041,828 Oc. Allocation to Bonds $1.040.000 Od. Allocation to Bonds $1,020.000 Allocation to Stock Warrants $15,000 Allocation to Stock Warrants $8,172 Allocation to Stock Warrants $10.000 Allocation to Stock Warrants $30,000 On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 102, and the warrants had a fair value of $8.Allocate the cash received between the different securities using the proportional method. O a. Allocation to Bonds $1,035.000 O b. Allocation to Bonds $1,041,828 Oc. Allocation to Bonds $1.040.000 Od. Allocation to Bonds $1,020.000 Allocation to Stock Warrants $15,000 Allocation to Stock Warrants $8,172 Allocation to Stock Warrants $10.000 Allocation to Stock Warrants $30,000
Expert Answer:
Answer rating: 100% (QA)
Lets solve this stepbystep AlMahed issued 1000 bonds at 1000 face value each for a total face value ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
On May 1, 2017, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of...
-
The current auditor of CTT Company Limited (CTT), the largest property management group in Hong Kong, will resign after the nancial statements audit for the year ended 31 December 2021. Tony, a...
-
On September 30, Hilltop Company's selected payroll accounts are as follows: Prepare general journal entries to record the following: Oct. 15 Payment of federal tax deposit of FICA taxes and the...
-
In r(t) is the position of a particle in space at time t. Find the particles velocity and acceleration vectors. Then find the particles speed and direction of motion at the given value of t. Write...
-
Mr. Tam is the front man for the Asian American dance-rock band The Slants. Mr. Tam named his band The Slants to reclaim and take ownership of Asian stereotypes. The band draws inspiration for its...
-
True or False. Write T if the corresponding statement is true. If the statement is false, write F and state what changes should be made to make it a true statement. 1. Activities of a general purpose...
-
An 88-year-old presents to a primary care office with their daughter for concerns of a skin ulceration on the lateral ankle with hair loss. This has been ongoing for months and has recently worsened....
-
K Ltd. paid an employee a tax-free travel allowance of $5,200 based on 9,000 kilometres of out-of-town driving. What amount can K deduct for tax purposes?
-
What is the function of Brake Chopper, draw the circuit diagram? What is the type of transformer which used in SMPS circuit and draw the oscillate which used in the SMPS ? Draw the structures and...
-
The corner of a plate is selected as the origin of a coordinate system as shown in the figure below. The dimensions of the plate are x = 15.8 cm, y = 8 cm and thickness = 0.9 cm. Two 25 mm diameter...
-
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone in Chicago and one in Minneapolis. The firm classifies...
-
(b) L e sin (x-1) dr. (d) sin (727) 8 (21 6(x+1)dx. (6) cos(xx)6(6x-x-1) dr. (h) e* 1x ez sin (ef sin) az. 8 (j) 8 -1 sin- () 6(x - 4) dr. (1)In(1+r) sin (3-1) dr. 2
-
Does XOM have hybrid securities? If so, is it worthwhile separating their debt and equity components? Is it likely that the debt will be converted, making it closer to equity than debt?
-
8. A thin-walled double-pipe parallel-flow heat exchanger is used to heat a chemical whose specific heat is 1800 J/kg- C with hot water (Cp = 4180 J/kg C). The chemical enters at 20C at a rate of 3...
-
A study aimed to determining the reasons for success or failure of small business. A sample of 5o entrepreneurs was asked to indicate the perceived areas of strength of their organizations. Their...
-
Use a calculator to evaluate the expression. Round your result to the nearest thousandth. V (32 + #)
-
Shlee Corporation issued a 4-year, $60,000, zero-interest-bearing note to Garcia Company on January 1, 2014, and received cash of $60,000. In addition, Shlee agreed to sell merchandise to Garcia at...
-
Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 the board of directors voted a $1.20 per share cash dividend to stockholders of record as of September 5,...
-
Edna Millay Inc. is a manufacturer of electronic components and accessories with total assets of $20,000,000. Selected financial ratios for Millay and the industry averages for firms of similar size...
-
Prove that the boosted right-handed spinor \(\psi_{\mathrm{R}}(\boldsymbol{p})\) is related to the corresponding rest spinor by Eq. (14.21).
-
Use the \(\gamma\)-matrices in the Weyl representation to show that the Dirac equation (14.31) is equivalent to Eq. (14.25). Data from Eq. 14.31 Data from Eq. 14.25 (y"Pu-m)(p) = (iy" - m)(p) = 0
-
Prove the identity \((\sigma \cdot \boldsymbol{p})^{2}=\mathrm{I}^{(2)} p^{2}\), where \(\sigma=\left(\sigma_{1}, \sigma_{2}, \sigma_{3} ight)\) are the Pauli matrices, \(\boldsymbol{p}\) is the...
Study smarter with the SolutionInn App