A Company Has $1,800,000 in Bonds Payable with an Unamortized

question 106

Multiple Choice

A company has $1,800,000 in bonds payable with an unamortized discount of $42,000.If two-thirds of the bonds are converted to common stock,the carrying value of the bonds payable will decrease by

• A) $586,000.
• B) $1,172,000.
• C) $1,228,000.
• D) $1,256,000.