Total value that chase corp should use to record warrants

Assignment Help Accounting Basics

Reference no: EM13149305

Chase Corp sold 200, $1,000, 6.5 percent bonds at 105 on March 1, 2006. Each bond has 10 warrants attached, and each warrant allows its holder to purchase one share of $1 par value common stock at $10 per share. At the time of sale, the bonds without the stock warrants would have sold for 102, and the stock warrants for $10. The stock warrants will expire on December 31, 2008. Select the total value that Chase Corp should use to record the detachable warrants issued on March 1, 2006.

a) $50,000

b) $20,000

c) $18,750

d) $0

Reference no: EM13149305

Questions Cloud

Overhead costs at year-end : Should any of the overhead costs at year-end be added to Job W? If so, how much? Explain.

Find true proportion of regular voters with confidence : A medium-size college town were surveyed, and it was found that 110 were regular voters. Estimate the true proportion of regular voters with 90% confidence.

Which is not a primary cause of economic growth : Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?

Discuss functions of the skin : Discuss 8 functions of the skin. Describe the application of one of these functions in modern medicine. State any possible setbacks.

Total value that chase corp should use to record warrants : The stock warrants will expire on December 31, 2008. Select the total value that Chase Corp should use to record the detachable warrants issued on March 1, 2006.

What is the incidence and mortality rate of cholera : While you are on a work-exchange program in Ghana, a cholera epidemic sweeps through the area where you are residing. Of the 2000 people living in the area, 200 people contract cholera and 20 die from the disease within one month.

What present expenditure is warranted for business : What present expenditure is warranted for business that is expected to produce a savings of $8000 per year that will decrease by $800 per year for nine years with an interest rate of 10%? Draw a cash flow diagram that depicts the situation as well..

What is the molar mass of lysine : What is the molar mass of lysine if 750.0 mL of a solution containing 8.60 g of lysine has an osmotic pressure of 1.918 atm? T = 25.0°C

What are the values of alpha and beta : Suppose the time spent by a randomly selected student who uses a terminal connected to a local time-sharing mini-frame computer facility. What are the values of alpha and beta?

User Account

All Pages