The primary purpose of a quasi-reorganization is to give a corporation the opportunity to
Question 12
Clay Corp . had $ 600,000 of convertible 8 % bonds outstanding at June 30 , 2005 . Each $ 1,000 bond was convertible into 10 shares of Clay ' s $ 50 par value common stock . On July 1 , 2005 , the interest was paid to bondholders and the bonds were converted into common stock , which had a fair market value of $ 75 per share . The unamortized premium on these bonds was $ 12,000 at the date of conversion . Under the book value method , this conversion increased the following elements of the stockholders ' equity section by
Question 13
On December 31 , 2003 , Moss Co . issued $ 1,000,000 of 11 % bonds at 109 . Each $ 1,000 bond was issued with 50 detachable stock warrants , each of which entitled the bondholder to purchase one share of $ 5 par common stock for $ 25 . Immediately after issuance , the market value of each warrant was $ 4 . On December 31 , 2003 , what amount should Moss record as discount or premium on issuance of bonds ?
Question 14
During 2005 , Brad Co . issued 5,000 shares of $ 100 par convertible preferred stock for $ 110 per share . One share of preferred stock can be converted into three shares of Brad ' s $ 25 par common stock at the option of the preferred shareholder . On December 31 , 2006 , when the market value of