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On December 31, 2012, Moss Co. Issued $1,000,000 of 11% bonds at 109. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of $5 par common stock for $25. Immediately after issuance, the market value of each warrant was $4. On December 31, 2012, what amount should Moss record as discount or premium on issuance of bonds?

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Accounting Basics, Accounting

Category:- Accounting Basics
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