Question: When a borrower has the right to pay some or all of the value of convertible debt in cash rather than in shares of stock,

When a borrower has the right to pay some or all of the value of convertible debt in cash rather than in shares of stock, GAAP requires
Multiple choice question.
combined recognition of all components as debt.
no recognition of either debt or equity components.
separate recognition of the debt and equity components.
combined recognition of all components as equity.

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