On April 1, 2016, Austere Corporation issued $390,000 of 8% bonds at 106. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $19. On that date, the market value of the common stock was $17 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?

Answer rating: 100% (QA)

Issue price of bonds 413400 390000106 Market va... View the full answer