Question: 25.The following information is the same as the previous question. A Company issued a bond payable with detachable warrants on the interest payment date as

25.The following information is the same as the previous question.

A Company issued a bond payable with detachable warrants on the interest payment date as follows.

Bond payable ($1,000 par value; 400 bonds) $400,000
Coupon rate 4.70%
Bond issue price $414,000
Fair value of the bonds after issuance $390,000
Term 10 years
Number of detachable warrants per bond 50
Fair value of the warrants after issuance $2.00
Stock purchase price $15.00
Warrants exercised 5,000

1 warrant = 1 share of $1 par value stock

What is the credit to additional paid in capital at the time the warrants are exercised on June 30, 20X1?

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