How Would the Liability Portion of the Compound Instrument Be

question 23

Multiple Choice

How would the liability portion of the compound instrument be recorded?

• A)Once separated, this component is accounted for at fair value with changes recorded through income.
• B)Once separated, this component is accounted for in accordance with its substance.
• C)Once separated, this component is accounted for at amortized cost.
• D)Once separated, this component is accounted for at historical cost.

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