Current Attempt in Progress On January 1,2023, when the fair value of its common...
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On January when the fair value of its common shares was $ per share, Crane Corp. issued $ million of convertible debentures due in years. The conversion option allowed the holder of each $ bond to convert the bond into common shares.
The debentures were issued for $ million. The bond payment's present value at the time of issuance was $ million and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January the corporation's common shares were split for and the conversion rate for the bonds was adjusted accordingly.
On January when the fair value of the corporation's common shares was $ per share, holders of of the convertible debentures exercised their conversion option. Crane applies ASPE and uses the straightline method for amortizing any bond discounts or premiums.
Prepare the entry to record the original issuance of the convertible debentures.
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