Question: What does applying the incremental ( residual ) method of accounting for convertible bonds invalve? The proceeds of the bond are altocated based on the

What does applying the incremental (residual) method of accounting for convertible bonds invalve?
The proceeds of the bond are altocated based on the relative market values of the straight bond and the conversion option
A gain on the sale of the bond is realized for the difference between the sales proceeds and the fair value of the bond without the conversion option
The option is valued at the difference between the sales proceeds and the market value of an equivalent bond without the option
The bond is recorded at the maturity value of the obligation and the conversion option is valued using an option-pricing model
What does applying the incremental ( residual )

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