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On November 3, 2020, AOC issued $400,000 of 8% bonds at 102. Attached to each...

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Accounting

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On November 3, 2020, AOC issued $400,000 of 8% bonds at 102. Attached to each $1,000 bond are 10 detachable stock warrants. On the issuance date, the bonds without the warrants sell in the market at 99 per bond, and the fair value of the warrants is $5.21 per warrant. Use the appropriate method to allocate the proceeds from the bond issuance, and prepare the journal entry to record the issuance

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