Current Attempt in Progress

On May $1,2025,$ Sandhill Co$.$ issued $$1610000$ of $8\%$ bonds at $102.$ The bonds are due on April $30,2031.$ Twenty detachable stock warrants entitling the holder to purchase for $$40$ one share of Sandhill's common stock, $$15$ par value, were attached to each $$1000$ bond. The bonds without the warrants would sell at $96.$ On May $1,2025,$ the fair value of Sandhill's common stock was $$35$ per share and of the warrants was $$2.$

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

discount of $$64400.$

discount of $$33488.$

premium of $$48300.$

O discount of $$16100.$