Question

On January 1, 2021, an entity issued a P3,000,000, 6% convertible bonds at par. The bonds are redeemable at a premium of 10% on December 31, 2024 or it may be converted into ordinary shares on the basis of 50 shares for each P1,000 bond at the option of the holder. The interest rate for an equivalent bond without the conversion rights would have been 10%. If the holders have no intention to exercise the conversion option, the issuance of convertible bonds on January 1, 2021 increased the entity's equity by? a. P880,568 b. P175,518 c. P73,068 d. P0

Answer 1

Answer:

a

Explanation:

the percentage increased