Proceeds from the bond issue as an increase in liabilities

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Reference no: EM13911981

On April 1, 2016, Austere Corporation issued $320,000 of 10% bonds at 107. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $14 per share and the market value of each warrant was $4. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?

Reference no: EM13911981

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