Tim Howard Gloves issued 4.75% bonds with a face amount of $35 million, together with 4 million

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Question:

Tim Howard Gloves issued 4.75% bonds with a face amount of $35 million, together with 4 million shares of its $1 par common stock, for a combined cash amount of $66 million. The fair value of Howard's stock cannot be determined. The bonds would have sold for $32 million if issued separately. For this transaction, Howard should record paid-in capital—excess of par in the amount of:

a. $37 million

b. $33 million

c. $29 million

d. $27 million