How Would Exercise of Warrants That Were Part of an Original

question 19

Multiple Choice

How would exercise of warrants that were part of an original compound instrument be recorded?

• A)Common stock is recorded at an amount equal to the fair value of the options at date of conversion.
• B)Common stock is recorded at an amount equal to the cash received plus the contributed surplus initially recorded.
• C)Common stock is recorded at an amount equal to the market price of the shares on conversion date.
• D)Common stock is recorded at an amount equal to the price determined by the Black-Sholes model.

---

Definitions:

Internal Oblique

The internal oblique is a muscle in the abdominal wall that plays a key role in respiration, posture, and abdominal pressure.

Fascicle Orientation

Refers to the direction and arrangement of muscle fiber bundles, which influence a muscle’s strength and range of motion.

Fusiform

A descriptive term for a spindle-shaped structure, often used in reference to certain muscle and bacteria shapes.

Multipennate

A muscle architecture where the fibers are arranged in multiple rows, with each row forming a different angle with the tendon, increasing the muscle's strength.