Consider the following scenario. two friends, rachel and joey, enjoy baking bread and making apple pies. rachel takes two hours to bake one loaf of bread and one hour to make one pie. joey takes four hours to bake one loaf of bread and four hours to make one pie. if rachel and joey decide to specialize in order to maximize their combined output, who should produce what? a) joey should specialize in making pies because he has an absolute advantage. b) rachel should specialize in making pies and joey should specialize in making bread c) joey should specialize in making pies and rachel should specialize in making bread. d) rachel should specialize in making bread and pies because she has a comparative advantage in both. e) rachel should not specialize because she is better at producing both

On january 1, 2018, gless textiles issued $12 million of 9%, 10-year convertible bonds at 101. the bonds pay interest on june 30 and december 31. each $1,000 bond is convertible into 40 shares of gless’s no par common stock. bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). century services purchased 10% of the issue as an investment. on january 1, 2018, gless textiles issued $12 million of 9%, 10-year convertible bonds at 101. the bonds pay interest on june 30 and december 31. each $1,000 bond is convertible into 40 shares of gless’s no par common stock. bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). century services purchased 10% of the issue as an investment. 3. on july 1, 2023, when gless’s common stock had a market price of $33 per share, century converted the bonds it held. prepare the journal entries by both gless and century for the conversion of the bonds (book value method).