A Gain or Loss on the Conversion of Bonds Payable

Multiple Choice

A gain or loss on the conversion of bonds payable to common stock would be recognized when using the $\begin{array}{lll}& \text {Book Value Method}& \text {Market Value Method}\\ \text { I. } & \text { Yes } & \text { No } \\\text { II. } & \text { Yes } & \text { Yes } \\\text { III. } & \text { No } & \text { No } \\\text { IV } & \text { No } & \text { Yes }\end{array}$

A) I
B) II
C) III
D) IV