DLC Company, a technology startup, is undergoing a new round of financing and seeks to entice bondholders by offering multiple types of debt. One set of bonds has detachable warrants. At the beginning of the current fiscal year, DLC issued $5,000,000 of 10% bonds for $5,210,000. Each $1,000 bond had 20 detachable warrants, and each of these warrants was redeemable for one share of DLC $1 par value stock at a price of $25. The fair value of a warrant was $10. Required:
a. Determine the value to be assigned to the bonds and the warrants and prepare the journal entry to record the issuance of the convertible bonds.
b. Assume that 4,000 warrants are subsequently exercised. Prepare the journal entry for the issuance of the common stock.

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.