Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1,2017 at 96.1 plus accrued interest. The bonds we
re dated April 1, 2017 with interestpayable April 1 and October 1. Bond discount is amortized semiannually on astraight-line basis. On April 1, 2018, $1,200,000 of these bonds were converted into500 shares of $20 par value common stock. Accrued interest was paid in cash at thetime of conversion.
What should be the amount of the unamortized bond discounton April 1, 2018 relating to the bonds converted?
A. $46,800.
B. $43,200.
C. $23,400.
D. $44,400.
What should be the amount of the unamortized bond discounton April 1, 2018 relating to the bonds converted?
A. $46,800.
B. $43,200.
C. $23,400.
D. $44,400.
1 answer:
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