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Business, 19.12.2019 01:31 drma1084

Delius corp. has outstanding 1,000 5% bonds, issued in year 1 at their face value of $1,000 each, which are currently selling at $1,150 each. in year 3 delius corp. reaches an agreement with its bondholders to issue 100 shares of stock for each bond instead of paying off the bonds at the maturity date. the stock has a fair market value of $18 per share. as a result of the above, what recognized gain must delius’s bondholders, now shareholders, report in year 3?

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Delius corp. has outstanding 1,000 5% bonds, issued in year 1 at their face value of $1,000 each, wh...
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