On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond...

Transcribed Image Text:

On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 102, and the warrants had a fair value of $8.Allocate the cash received between the different securities using the proportional method. O a. Allocation to Bonds $1,035.000 O b. Allocation to Bonds $1,041,828 Oc. Allocation to Bonds $1.040.000 Od. Allocation to Bonds $1,020.000 Allocation to Stock Warrants $15,000 Allocation to Stock Warrants $8,172 Allocation to Stock Warrants $10.000 Allocation to Stock Warrants $30,000 On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 102, and the warrants had a fair value of $8.Allocate the cash received between the different securities using the proportional method. O a. Allocation to Bonds $1,035.000 O b. Allocation to Bonds $1,041,828 Oc. Allocation to Bonds $1.040.000 Od. Allocation to Bonds $1,020.000 Allocation to Stock Warrants $15,000 Allocation to Stock Warrants $8,172 Allocation to Stock Warrants $10.000 Allocation to Stock Warrants $30,000

Answer rating: 100% (QA)

Lets solve this stepbystep AlMahed issued 1000 bonds at 1000 face value each for a total face value ... View the full answer