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It is not unusual to issue long-term debt in conjunction with an arrangement under which lenders receive an option to buy common stock during all or a portion of the time the debt is outstanding. Sometimes the vehicle is convertible bonds; sometimes warrants to buy stock accompany the bonds and are separable. Interstate Chemical is considering these options in conjunction with a planned debt issue."You mean we have to report $7 million more in liabilities if we go with convertible bonds? Makes no sense to me," your CFO said. "Both ways seem pretty much the same transaction. Explain it to me, will you?"
Required:
Write a memo. Include in your explanation each of the following:
1. The differences in accounting for proceeds from the issuance of convertible bonds and of debt instruments with separate warrants to purchase common stock.
2. The underlying rationale for the differences.
3. Arguments that could be presented for the alternative accounting treatment.
a company produces a single product. the company has set the following standards for materials and labor std qty or
Your schedule and statement must be in proper form - this means they should look like they would in an annual report-Prepare a schedule of cost of goods manufactured in good form.
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Discuss your opinion about the value of your enterprise technology example and if you think it appropriately addressed optimal management of the value chain.
For the fiscal year,sales were $5,280,000,sales discounts were $100,000, sales returns and allowances were $75,000 and the cost of the merchandise sold was $3,000,000. (A) what is the amount of net sales?
a division of hewlett-packard company changedits production operations from one where a large labor forceassembled
Grace provides 52% of the household costs for her widowed mother during the year. Grace claims her mother as a dependent. Can Grace file a return as head of Household if her mother does not live with her? Explain the reason behind your answer?
Each student will be responsible for presenting a synopsis/review of one journal article and facilitating a brief class discussion pertinent to the article. The article must pertain to diversity in the workplace. A written synopsis of the article ..
An apartment house was purchased on July 8 of last year, by a taxpayer who computes her taxes on a calendar basis. Her depreciation deduction last year was $7,902.
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