Multiple Choice
On June 30,2016,Blair Industries had outstanding $80 million of 8% convertible bonds that mature on June 30,2017.Interest is payable each year on June 30 and December 31.The bonds are convertible into 6 million shares of $10 par common stock.At June 30,2016,the unamortized balance in the discount on bonds payable account was $4 million.On June 30,2016,half the bonds were converted when Blair's common stock had a market price of $30 per share.When recording the conversion,Blair should credit paid-in capital-excess of par:
A) $6 million.
B) $8 million.
C) $10 million.
D) $12 million.
Correct Answer:
Verified
Correct Answer:
Verified
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