Current Attempt in Progress

On May $1,2025,$ Cullumber Co$.$ issued $$2400000$ of $8\%$ bonds at $103.$ The bonds are due on April $30,2031.$ Twenty detachable stock warrants entitling the holder to purchase for $$40$ one share of Cullumber's $$15$ par value common stock were attached to each $$1000$ bond. The bonds without the warrants would sell at $96.$ On May $1,2025,$ the fair value of Cullumber's common stock was $$35$ per share and of the warrants was $$2.$

On May $1,2025,$ Cullumber will record a

discount of $$24000.$

discount of $$96000.$

discount of $$26880.$

premium of $$72000.$

eTextbook and Media

Attempts: $0$ of $2$ used