Refer to BE16-12. Assume that Bantry Capital Ltd. follows ASPE and valued the debt component of the instruments first, applying the residual to the equity component. On a date when the bonds had a carrying value of $489,100 and fair value of $492,370, Bantry paid $530,000 in cash to the bondholders to retire the bonds early. Record the retirement using the book value method.

Data From BE16-12:

Bantry Capital Ltd. issued 500 $1,000 bonds at 103. Each bond was issued with 10 detachable stock warrants. After issuance, similar bonds were sold at 97, and the warrants had a fair value of $2.50. (a) Record the issuance of the bonds and warrants assuming that Bantry Capital follows IFRS. (b) Assuming that Bantry Capital follows ASPE, discuss the two options available to record the issuance of the bonds and warrants, and prepare the journal entry for each option.