What is the initial measurement of conversion option on jan

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Problem 1: On January 1,2021, an entity issued 1,000 2-year bonds, face value P1,000, at 102. The bonds contain a conversion privilege that provides for an exchange of a P1,000 bond for 10 Ordinary shares with par value of P20. The bonds are selling at 97 without conversion privilege. The total fair value of conversion option at this date is P60,000. What is the initial measurement of conversion option on January 1, 2021?

Reference no: EM132772394

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