Mae Jong Corp.issued 1,000 convertible bonds at the beginning of 2011.The bonds have a four-year term with a stated rate of interest of 6 percent, and are issued at par with a face value of €1,000 per bond (the total proceeds received from issuance of the bonds are €1,000,000).Interest is payable annually at December 31.Each bond is convertible into 250 ordinary shares with a par value of €1.The market rate of interest on similar non-convertible debt is 9 percent.Assume that at the issuance date, €97,187 was credited to Share Premium-Conversion Equity and that the bonds were not converted at maturity.What amount will Mae Jong credit to Share Premium-Ordinary at the maturity date? The following present value factors are available:

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The Answer of Mae Jong Corp.issued 1,000 convertible bonds at the beginning of 2011.The bonds have a four-year term with a stated rate of interest of 6 percent, and are issued at par with a face value of €1,000 per bond (the total proceeds received from issuance of the bonds are €1,000,000).Interest is payable annually at December 31.Each bond is convertible into 250 ordinary shares with a par value of €1.The market rate of interest on similar non-convertible debt is 9 percent.Assume that at the issuance date, €97,187 was credited to Share Premium-Conversion Equity and that the bonds were not converted at maturity.What amount will Mae Jong credit to Share Premium-Ordinary at the maturity date? The following present value factors are available: