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QUESTION THREE On January 1, 2022, Lin ple issued a cotwertible bond with a par...

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QUESTION THREE On January 1, 2022, Lin ple issued a cotwertible bond with a par value of 570,000 in the mainet for $84,000. The bonds are convertible into 6,000 ordinary shares of $1 per share par value. The bond has a 5-year life and has a stated interest rate of 105 s payable annually. The market interest rate for a similar non-convertible bond at January 1. 2022, is 8%. The liability component of the bond is computed to be $75,590. Carrying amount from the amorization schedule at December. 31.20124 is 72.496. Instructions: a. Assume that the bonds were convened on December 31. 2024. The fair value of the liability Dember 31,2024 . Assuma b. Assume that the convertibic bonds were repurenzsou component of the bond is ucwewm 2024 has

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