Cause the bondholders to convert their bonds into stock

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Reference no: EM13827257

Family Food Industries reported the following at September 30:

Long term liabilities:

Convertible bonds payable -- $400,000

Less: Discount on bonds Payable -- (12,000) $388,000

Requirements

1. Record retirement of half of the bonds on October 1 at the call price of 101

2. Imagine that the bonds had not been retired. What would cause the bondholders to convert their bonds into stock?

Reference no: EM13827257

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