Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please show calculations and explanation on januar

please show calculations and explanation On January 2, 2019, Farr Co. issued a $1,000 face-value...

70.2K

Verified Solution

Question

Accounting

please show calculations and explanation

On January 2, 2019, Farr Co. issued a $1,000 face-value convertible bond at 105. The fair value for the debt feature is $1,020 and for the conversion feature is $30. Farr should allocate the convertible bond proceeds to debt (bond feature) and equity (conversion feature) as

a. Debt $1000 and Equity $50.

b. Debt $0 and Equity $1050.

c. Debt $1020 and Equity $30.

d. Debt $1050 and Equity $0.

e. Debt $105 and Equity $0.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

40. Titanium, a hapten, is now being used frequently in human joint replacement. In terms of...

Biology
Q

3 points Which measures can protect biodiversity legal O O O C protections conservation efforts...

Biology
Q

Question 18 of 25 18 This road sign means STOP

Biology
Q

Which side is the hypotenuse of triangle DEF F 5 in 13 in D 12...

Geometry
Q

In 3 11 Find the indicated information P is perimeter A is area Round answers...

Geometry
Q

Given f(x) = -log3 (x + 2) + 1, find the following.a. Use the transformations...

Basic Math
Q

Question: Find the polynomial function, f, such that there is a local minimum at x...

Basic Math
Q

1 2 3 1 2 3 2 3 12 3 0 20 Step 3 Here...

Algebra
Q

Suppose Wheatum is considering discontinuing its fruit and nuts product line. Assume that during the...

Accounting
Q

Problem 3-17A Contrast Activity-Based Costing and Conventional Product Costs [LO3-2, LO3-3, LO3-4] [The following information...

Accounting
Q

Ending inventory at lower-of-cost-or-market = $85,140 IS INCORRECT WRONG WRONG WRONG

Accounting
Q

"Assess how tax affects a project's valuation by evaluating the trade-offs of funding a project...

Finance