Bradley-link’s december 31, 2021, balance sheet included the following items: long-term liabilities ($ in millions) 9.6% convertible bonds, callable at 101 beginning in 2022, due 2025 (net of unamortized discount on $2) [note 8] $198 10.4% registered bonds callable at 104 beginning in 2031, due 2035 (net of unamortized discount on $1) [note 8] 49 shareholders’ equity 4 equity—stock warrants. Prepare the journal entry to record the exercise of the warrants in December 2021

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?

Search engines generate revenue through pay-per-click (each time a user clicks a link to a retailer’s website); pay-per-call (each time a user clicks a link that takes the user to an online agent waiting for a call); or pay-per-conversion (each time a website visitor is converted to a customer)