To record newly issued stock shares upon conversion of debt,managers most often choose the method known as the

A) market value method.
B) book value method.
C) Black-Scholes method.
D) par value methoD.

Question

To record newly issued stock shares upon conversion of debt,managers most often choose the method known as theA) market value method.B) book value method.C) Black-Scholes method.D) par value methoD.

Alejandra Rosales · Accepted Answer

Final Answer : B, Explanation :  The book value method is most often chosen by managers to record newly issued stock shares upon conversion of debt because it involves converting the debt based on the book value of the shares or the debt, rather than their market value or any other valuation method. This approach is straightforward and aligns with accounting principles, making it a preferred choice for such transactions.

To record newly issued stock shares upon conversion of debt,managers most often choose the method known as the

A) market value method.
B) book value method.
C) Black-Scholes method.
D) par value methoD.

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