On March $1,2023,$ Ivanhoe Corporation issued $$400,000$ of $8\%$ non$-$convertible bonds at$\text{'}104,$ which are due on February $28,2043.$ In addition, each $$1,000$ bond was issued with $25$ detachable stock warrants, each of which entitled the bondholder to purchase one of Ivanhoe's no par value common shares for $$50.$ The bonds without the warrants would normally sell at $94.$ Ivanhoe prepares its financial statements in accordance with IFRS. $($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 O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Cash

$416000$

Bonds Payable

Contributed Surplus $-$ Stock Warrants

Attempts: $1$ of $3$ used

$($b$)$

Sarasota Corp. issued $$10,000,000$ of par value, $9\%$ convertible bonds at $98.$ If the bonds had not been convertible, the company's investment banker estimates they would have been sold at $92.$ Sarasota has adopted ASPE and would like to explore all options available to report the convertible bond. $($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. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Option $1$: Residual Method

$$

$$

$$

Option $2$: Value Equity component at zero