Use the Following Information for Questions

question 41

Multiple Choice

Use the following information for questions.
On May 1, 2012, Payne Co.issued $300,000 of 7% bonds at 103, which are due on April 30, 2022.Twenty detachable share warrants entitling the holder to purchase for $40 one share of Payne'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 Payne's shares was $35 per share and of the warrants was $2.
-On May 1, 2012, Payne should credit Share Premium -Share Warrants for

• A)$9,000.
• B)$12,000.
• C)$21,000.
• D)$12,360.

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Objectivity

The quality of being unbiased, not influenced by personal feelings or opinions in considering and representing facts.

"Weak" Situations

Contexts in which social norms and expectations are not well defined, allowing for a wider range of behaviors.

Personal Characteristics

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