A Company Has $1,606,000 in Bonds Payable with an Unamortized

question 11

Multiple Choice

A company has $1,606,000 in bonds payable with an unamortized premium of $40,000.If one-fourth of the bonds are converted to common stock,the carrying value of the bonds will decrease by

• A)$401,500.
• B)$441,500.
• C)$391,500.
• D)$411,500.

---

Definitions:

Thiamin

A water-soluble vitamin, also known as Vitamin B1, vital for energy metabolism in the body.

Beriberi

A nutritional deficiency disease caused by a lack of thiamine (vitamin B1) in the diet, affecting the cardiovascular and nervous systems.

Proteins

Essential macromolecules made of amino acids that perform a wide range of functions within organisms, including catalyzing metabolic reactions and supporting cell structure.

Cofactors

Non-protein chemicals that assist enzymes in catalyzing reactions, essential for enzyme activity.