What is the amount that will initially be credited

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Question 1: On January 1, 20X5, Pacific Inc., a publicly reportable company, issued (sold) $10,000,000 of 4%, six-year convertible bonds for net proceeds of $10,400,000. Each $1,000 bond is convertible into 20 common shares at the option of the investor. Similar non-convertible bonds were yielding 5%. Interest is paid semiannually on June 30 and December 31. What is the amount that will initially be credited to bonds payable?

a) $ 9,487,112

b) $ 9,492,431

c) $10,000,000

d) $10,400,000

Reference no: EM132599919

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