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Business, 12.03.2021 15:10 trouse492

On April 1, 2021, Austere Corporation issued $350,000 of 11% bonds at 106. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $16. On that date, the market value of the common stock was $14 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities

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On April 1, 2021, Austere Corporation issued $350,000 of 11% bonds at 106. Each $1,000 bond was sold...
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