On June 30, 2021, Blair Industries had outstanding $106 million of 9% convertible bonds that mature…

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On June 30, 2021, Blair Industries had outstanding $106 million of 9% convertible bonds that mature…

On June 30, 2021, Blair Industries had outstanding $106 million of 9% convertible bonds that mature on June 30, 2022. Interest is payable each year on June 30 and December 31. The bonds are convertible into 9 million shares of $10 par common stock. At June 30, 2021, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2021, half the bonds were converted when Blair’s common stock had a market price of $43 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:

  • $8 million.

  • $4 million.

  • $6 million.

  • $10 million.

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Reference no: EM132069492

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