When convertible debt is not converted at maturity
A) a gain or loss is recorded for the difference between the book value of the debt and the present value of the cash flows.
B) the amount originally allocated to equity is recorded as a gain on retirement.
C) the amount allocated to the equity component at the issuance date is recorded as a loss on retirement.
D) the carrying value of the bond equals its face value and it is removed from the books.
Correct Answer:
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