Use the Following Information for Questions

question 61

Multiple Choice

Use the following information for questions.
On May 1, 2012, Marly Co.issued $500,000 of 7% bonds at 103, which are due on April 30, 2022.Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marly's ordinary shares $15 par value, were attached to each $1,000 bond.The bonds without the warrants would sell at 96.On May 1, 2012, the fair value of Marly's shares was $35 per share and of the warrants was $2.
-On May 1, 2012, Marly should record bonds payable at

• A)$515,000.
• B)$500,000.
• C)$480,000.
• D)$494,400.

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Definitions:

Dilation And Curettage

A surgical procedure involving the dilation of the cervix and scraping or suctioning of the uterine lining, often performed after a miscarriage or for diagnostic purposes.

Abbreviation

The act of shortening a word or phrase while still maintaining its original meaning.

Ascus

A sac-like structure in fungi in which spores are produced through sexual reproduction.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, often caused by sexually transmitted bacteria.