Which situation best illustrates the economie concept of opportunity cost? A. A business decides to begin advertising its product in more
foreign markets
O B. A business takes out a large loan, so it is able to expand into a
new market.
O C. A business plans to relocate to a new city after taxes increase in
its home city
D. A business gives its employees a raise, so it cannot afford to buy
any TV ads.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.