Sandhill Corporation issued convertible bonds at a premium of $9900. The $208000 bond issue was convertible into 4400 shares of common stock (par value $20). Two years later, all of the bonds were converted to shares of stock. At that time, the unamortized premium was $4200, the market value of the bonds was $228000, and the market value of the stock was $60 per share. What amount of paid-in capital in excess of par is recorded on the conversion of the bonds? O $144200 $120000 $124200 ○ $129900

Sandhill Corporation issued convertible bonds at a premium of $9900. The $208000 bond issue was convertible into 4400 shares of common stock (par value $20). Two years later, all of the bonds were converted to shares of stock. At that time, the unamortized premium was $4200, the market value of the bonds was $228000, and the market value of the stock was $60 per share. What amount of paid-in capital in excess of par is recorded on the conversion of the bonds? O $144200 $120000 $124200 ○ $129900

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 21E: On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be...

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