schieble corporation provide detachable 5-year


Schieble Corporation provide detachable 5-year warrants to buy one share of common stock (par value $2) at $30 (at a time when a share was selling for just about $45). The price paid for 2,000, $1,000 bonds with the warrants attached was par, or $200,000. Consider the market price of the Schieble bonds was known to be $180,000, but the market price of the warrants without the bonds cannot be evaluated, what are the amounts that should be allocated to the warrants and the bonds?

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Cost Accounting: schieble corporation provide detachable 5-year
Reference No:- TGS0483788

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