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

Under the most common accounting method in practice, when convertible bonds are converted into shares




A.the face value of the bonds is recorded as common shares.


B.the market value of the bonds is recorded as common shares.


C.a gain or loss should be recognized.


D.the book value of the bonds is transferred to common shares and contributed surplus accounts.

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