Question: Main Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. The sum of the fair value of the

Main Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value.

The sum of the fair value of the warrants and the face amount of the bonds exceeds the cash proceeds. This excess is reported as

a. Discount on bonds payable.

b. Premium on bonds payable.

c. Common stock subscribed.

d. Contributed capital in excess of par—stock warrants.

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