When convertible bonds are converted to equity, the company records a gain on conversion when the bond carrying value is greater than the par value of the equity.

Name: When convertible bonds are converted to equity, the company records a gain on conversion when the bond carrying value is greater than the par value of the equity.
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When convertible bonds are converted to equity, no gain or loss is recognized. The carrying value of the bonds is transferred to equity accounts, reflecting the conversion.

When Convertible Bonds Are Converted to Equity, the Company Records