Payne should credit paid-in capital from stock warrants for

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Reference no: EM131306145

On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 103, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne’s common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2014, the fair value of Payne’s common stock was $35 per share and of the warrants was $2.

On May 1, 2014, Payne should credit Paid-in Capital from Stock Warrants for?

$34,560

$36,000

$37,080

$63,000

On May 1, 2014, Payne should record the bonds with a?

Discount of $36,000

Discount of $10,080

Discount of $9,000

Reference no: EM131306145

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