Patrick Roch International issued 5% bonds convertible into shares of the company's common stock. Roch applies U.S. GAAP. Upon issuance, Patrick Roch International should record:
A) The proceeds of the bond issue as part debt and part equity.
B) The proceeds of the bond issue entirely as debt.
C) The proceeds of the bond issue entirely as equity.
D) The proceeds of the bond issue entirely as debt if the bonds are mandatorily redeemable.
Correct Answer:
Verified
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