Question: nder the most common accounting method in practice, when convertible bonds are converted into shares the face value of the bonds is recorded as common

nder the most common accounting method in practice, when convertible bonds are converted into shares the face value of the bonds is recorded as common shares. the carrying value of the bonds and the related contributed surplus account are transferred to common shares. a gain or loss should be recognized. the market value of the bonds is recorded as common shares

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