Tim Howard Gloves issued 6.25% bonds with a face amount of $30 million, together with 16 million shares of its $1 par common stock, for a combined cash amount of $56 million. The fair value of Howard's stock cannot be determined. The bonds would have sold for $24 million if issued separately. For this transaction, Howard should record paid-in capital—excess of par in the amount of:

Tim Howard Gloves issued 6.25% bonds with a face amount of $30 million, together with 16 million shares of its $1 par common stock, for a combined cash amount of $56 million. The fair value of Howard's stock cannot be determined. The bonds would have sold for $24 million if issued separately. For this transaction, Howard should record paid-in capital—excess of par in the amount of:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7MCQ

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