Beta4 Incorporation, a hypothetical company, issued $6 million of 8% bonds on February 1, 2004 which are due in 8 years. At the time of issuance, the bonds were quoted 99 in the market. Accompanying each $1,000 bond were 15 warrants. Each warrant permitted the holder to buy one share for $0.5 par common stock at $20 per share. Suppose that 80% of the warrants were exercised when market price of Beta4 Incorporation share was $25. How much share capital company will raise due to warrant exercise of the warrant holders?

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At the end of 2020, Culver Corporation owns a licence with a carrying amount of $504,000. Culver expects undiscounted future cash flows from this licence to total $510,000. The licence's fair value is $399,000 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $445,300. Assume that the licence was granted in perpetuity and has an indefinite life, and that Culver prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life. (a) Determine if the licence is impaired at the end of 2020. The licence at the end of 2020. Prepare any related entry that is necessary. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit At the end of 2020, Culver Corporation owns a licence with a carrying amount of $504,000. Culver expects undiscounted future cash flows from this licence to total $510,000. The licence's fair value is $399,000 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $445,300. Assume that the licence was granted in perpetuity and has an indefinite life, and that Culver prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life. (a) Determine if the licence is impaired at the end of 2020. The licence at the end of 2020. Prepare any related entry that is necessary. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

Answer The company will raise 16 million from the exercise of the warrants 15 wa... View the full answer