In Most Cases, U

In most cases, U.S.GAAP requires firms to allocate the full issue price of Convertible Bonds or Convertible Preferred Stock

A) to the bonds or preferred stock and none of the price to the conversion feature.
B) to the bonds or preferred stock and the conversion feature based on fair values.
C) to the bonds or preferred stock and the conversion feature based on the present value of future cash flows.
D) to the bonds or preferred stock and the conversion feature based on the future value of present cash flows.
E) to the price to the conversion feature and none to the bonds or preferred stock.