Slimline and distributor signed a contract providing that distributor would use reasonable efforts to promote and sell slimline’s diet drink. slimline was already being sold in warehouse club. after the contract was signed, distributor stopped conducting in-store demos of slimline. it did not repackage the product as slimline and warehouse had requested. sales of slimline continued to increase during the term of the contract. slimline sued distributor, alleging a violation of the agreement. who should win?

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.