Use the Following Information for Questions

question 47

Multiple Choice

Use the following information for questions.
On July 1, 2017, Casablanca Ltd.issued $6,000,000 (par value) , 9%, ten-year convertible bonds at 98 plus accrued interest.The bonds were dated April 1, 2017 with interest payable quarterly on July 1, October 1, January 1 and April 1.If the bonds had NOT been convertible, they would have sold for 96.1 plus accrued interest.The bond discount is amortized on a straight-line basis.On April 1, 2018, $1,200,000 of these bonds were converted into 500 no par common shares.Accrued interest was paid in cash at the time of conversion.
-What is the amount of the unamortized bond discount on April 1, 2018 relating to the bonds that were converted?

• A)$64,246
• B)$46,800
• C)$43,200
• D)$44,400

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Definitions:

Unorganized Information

Data or facts that are not systematically arranged, making it difficult to process, understand, or utilize efficiently.

Memory Strategy

Techniques or activities designed to improve the ability to retain and recall information.

Organization

Piaget’s concept of grouping isolated behaviors into a higher-order, more smoothly functioning cognitive system; the grouping or arranging of items into categories.

Explicit Memory

Conscious memory of facts and experiences.