Wang Inc Has $ 3,000,000 (Par Value), 8% Convertible Bonds Outstanding

question 11

Multiple Choice

Wang Inc. has $ 3,000,000 (par value) , 8% convertible bonds outstanding. Each $ 1,000 bond is convertible into thirty no par value common shares. The bonds pay interest on January 31 and July 31. On July 31, 2020, the holders of $ 900,000 worth of bonds exercised the conversion privilege. On that date the market price of the bonds was 105, the market price of the common shares was $ 36, the carrying value of the common shares was $ 18 and the Contributed Surplus-Conversion Rights account balance was $ 450,000. The total unamortized bond premium at the date of conversion was $ 210,000. Using the book value method, Wang should record, as a result of this conversion,

• A) no gain or loss.
• B) a loss of $ 9,000.
• C) other comprehensive income of $ 9,000.
• D) a gain of $ 18,000.

Define key psychological concepts related to sensation seeking and specific personality traits.

Articulate the relationship between physiological processes and psychological states.

Understand the genetic and biological underpinnings of sexual orientation.

Identify and explain the types of needs outlined by various motivation theories.

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Definitions:

Rival Consumption

A situation where the consumption of a good or service by one person reduces its availability for consumption by another person.

Excludable

A characteristic of a good or service that means it can be limited to only paying customers or those who meet certain criteria.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Individual Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by an individual consumer, holding other factors constant.