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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?
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Determine the cost and accumulated depreciation of the equipment sold during 19X4 and determine the selling price of the equipment sold.
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