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When a bond issue is converted into common stock, total contributed capital is
increased by the fair market value of the bonds converted.
Since investing activities center on the long-term assets shown on the balance sheet,
they do not include any short-term investments shown under current assets on the
balance sheet
The product warranty liability is an example of an estimated liability.
Present value refers to an amount that must be invested today at a given rate of interest
to produce a given future value.
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