Problemon april 1 2013 austere corporation issued 380000 of, Ask an Expert

Finance

Problem:

On April 1, 2013, Austere Corporation issued $380,000 of 10% bonds at 107. Each $1,000 bond was sold with 20 detachable stock warrants, each permitting the investor to purchase one share of common stock for $16. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $3.

Required:

Question: Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?

$509,100
$383,800
$308,300
$0

Note: Solve the problem and show all work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174841

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