Bond Issued With Stock Warrants (Detachable Vs Non-detachable Warrants, PIC,Discount)

Accounting for bonds issued with stock warrants, comparing detachable versus non-detachable stock warrants, affect on paid-in-capital and any bond discount or premium, example based on the proportional method to allocate the detached warrant values between bonds & warrants, Detachable Warrant can be separated from the security & traded as a separate security, Non-detachable Warrant stays with the security (bond), by purchasing a bond with warrant or the warrant separately the buyer receives the right to buy Stock (equity) at a fixed price in the future, with a detachable warrant the value allocated to the warrant increases equity paid-in-capital, non-detachable warrant there is no separate recognition for the warrant, example Corp-A issued 4,000 of $1,000 Bonds at 101 (101% par), each Bond was issued with (1) detachable Stock Warrant, 1-After issuing Bonds were selling at 98 (98% of par) without warrant, the Warrants had a market value of $40 ea, Bonds & Warrants each could be sold separately, detailed accounting by Allen Mursau

[@trentlacrosse56]

Allen. You have helped me immensely with FAR2 at University of Florida. You are the man. Thank you.

[@DemonofMistify]

Thank you for comparing the difference between detachable and nondetachable warrants. Your videos are a great supplement to the Becker CPA review.

[@sunheejung6572]

Thanks a lot;)