A company should allocate the proceeds from the sale of debt with detachable share warrants between the two securities based on their a fair values.

Name: A company should allocate the proceeds from the sale of debt with detachable share warrants between the two securities based on their a fair values.
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Question

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The proceeds from the sale of debt with detachable share warrants should be allocated between the debt and the warrants based on their relative fair values at the time of issuance.

A Company Should Allocate the Proceeds from the Sale of Debt