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On May 1, 2010, Warren Co. issued $500,000 of 7% bonds at 103, which are due on April 30, 2020. 20 detachable stock warrants entitling the holder to purchase for $40 one share of Warren'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, 2010, the fair value of Warren's common stock was $35 per share and of the warrants was $2.
On May 1, 2010, Warren should record the bonds with a discount of how much?
Paper#9257271 | Written in 27-Jul-2016Price : $16