The below information will be used for the next two questions. A Company issued a bond payable
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The below information will be used for the next two questions.
A Company issued a bond payable with detachable warrants on the interest payment date as follows.
| Bond payable ($1,000 par value; 400 bonds) | $400,000 |
| Coupon rate | 4.70% |
| Bond issue price | $414,000 |
| The fair value of the bonds after issuance | $390,000 |
| Term | 10 years |
| Number of detachable warrants per bond | 50 |
| The fair value of the warrants after issuance | $2.00 |
| Stock purchase price | $15.00 |
| Warrants exercised | 5,000 |
1 warrant = 1 share of $1 par value stock
What is interest expense in 20X1?
Expert Answer:
Related Book For 
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
