If bonds with a face value of $154000 are converted into common stock when the carrying value of the bonds is $136000, the entry to record the conversion will include a debit to Discount on Bonds Payable for $18000. Bonds Payable equal to the market price of the bonds on the date of conversion. Bonds Payable for $154000. Bonds Payable for $136000.

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value