The following journal entry pertains to convertible notes with a face value of $10 million:
Which of the following statements are correct?
A. The instrument was over-valued when it was initially recognised.
B. The convertible note has been converted.
C. The value of the option to convert has increased over the period from initial recognition to conversion, by $477,238.
D. The instrument was over-valued when it was initially recognised and the value of the option to convert has increased over the period from initial recognition to conversion, by $477,238.
E. The instrument was over-valued when it was initially recognised and the convertible note has been converted.

Question

The following journal entry pertains to convertible notes with a face value of $10 million:
  Which of the following statements are correct? 
A. The instrument was over-valued when it was initially recognised.
B. The convertible note has been converted.
C. The value of the option to convert has increased over the period from initial recognition to conversion, by $477,238.
D. The instrument was over-valued when it was initially recognised and the value of the option to convert has increased over the period from initial recognition to conversion, by $477,238.
E. The instrument was over-valued when it was initially recognised and the convertible note has been converted.

Quizplus · Accepted Answer

The Answer of The following journal entry pertains to convertible notes with a face value of $10 million:
  Which of the following statements are correct? 
A. The instrument was over-valued when it was initially recognised.
B. The convertible note has been converted.
C. The value of the option to convert has increased over the period from initial recognition to conversion, by $477,238.
D. The instrument was over-valued when it was initially recognised and the value of the option to convert has increased over the period from initial recognition to conversion, by $477,238.
E. The instrument was over-valued when it was initially recognised and the convertible note has been converted.

The Following Journal Entry Pertains to Convertible Notes with a Face