Illustration 8 (Issue of debentures to vendors at par) A company purchased assets of the book...

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Illustration 8 (Issue of debentures to vendors at par) A company purchased assets of the book value of 99,000 from another firm. It was agreed that the purchase consideration be paid by issuing 11% Debentures of * 100 each. Assume debentures have been issued, (i) at par or (ii) at discount of 10%, (iii) at a premium of 10%. Illustration 8 (Issue of debentures to vendors at par) A company purchased assets of the book value of 99,000 from another firm. It was agreed that the purchase consideration be paid by issuing 11% Debentures of * 100 each. Assume debentures have been issued, (i) at par or (ii) at discount of 10%, (iii) at a premium of 10%.