Use the Following Information for Questions 47-49

question 32

Multiple Choice

Use the following information for questions 47-49.
On July 2, 2020, Martineau Ltd. issued $ 6,000,000 (par value) , 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2020 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. The bond discount is amortized on a straight-line basis. On April 1, 2021, $ 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, 2021 relating to the bonds that were converted?

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

Evaluate the efficiency of departments based on cost allocations and capacity planning.

Understand the impact of cost allocations on customer service and order fulfillment strategies.

Understand the key differences between absorption costing and variable costing methods.

Identify which costs are treated as product costs under variable and absorption costing.