Question: Levi Corp issued $ 1 0 , 0 0 0 , 0 0 0 par bonds for $ 1 0 , 9 0 0 ,

Levi Corp issued $

10, 000, 000

par bonds for $

10, 900, 000 .

Each bond had twenty warrants attached that entitle the holders to buy preferred stock at a later date. The bonds without the warrants would probably sell at

101 .

Record journal entries for these scenarios:

.

The market value of the warrants is unknown.

.

Each warrant can be readily sold for about $

3 .

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