How such a result could occur


Susan Kline works for Trend Press, a fairly large book publishing firm. Her best friend and rival, Lisa, works for Silver Books, a smaller publisher. Both companies issue $100,000 in bonds on July 1. Trend's bonds were issued at a discount, while Silver's were issued at a premium. Lisa sent Susan a fax the next day. She told Susan that it was obvious who the better publisher was-the market had shown its preference! She reminded Susan again of her recent increase in salary as further proof of the superiority of Silver Books.Draft a short note for Susan to send to Lisa. Explain how such a result could occur.

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Accounting Basics: How such a result could occur
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