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Occasionally corporations offer additional consideration to help induce the conversion of bonds into stock. This...

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Accounting

Occasionally corporations offer additional consideration to help induce the conversion of bonds into stock. This additional consideration is known as sweetener. In the entry to record bond conversion, sweetener should be recorded as

Select one:

A reduction in paid in capital

An amortizable asset

An expense in the current period

An addition to paid in capital

A reduction in the amount of unamortized premium or discount written off

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