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acquisition of shares for loan notes

This topic has 4 replies, 2 voices, and was last updated 7 years ago by MikeLittle.

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August 9, 2015 at 8:34 am #266313
Victoria
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one more question, Mike, help needed, please

for every 1,000 shares acquired, P is to issue a 4.5% $100 loan note values at par. we bought 85% of S 600,000 shares. the market price of the S shares was $2.20 at the moment. how should we account for this in our FS?
August 9, 2015 at 10:15 am #266330
Victoria
- Topics: 28
- Replies: 70
could it be this way:
4.5% loan notes (600,000 x 85% x 100/1,000) = $51,000?

just desperately tried to apply my critical thinking skills to the issue in your absence :))
August 9, 2015 at 1:13 pm #266360
MikeLittle
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That’s absolutely correct – well done with your critical thinking!
August 9, 2015 at 1:14 pm #266362
Victoria
- Topics: 28
- Replies: 70
thank you 🙂
August 9, 2015 at 1:58 pm #266375
MikeLittle
Keymaster
- Topics: 26
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You’re welcome
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