Question: On August 1 , 2 0 2 0 , Peyton Technology issued $ 9 0 0 , 0 0 0 of 7 % bonds at

On August 1,2020, Peyton Technology issued $900,000 of 7% bonds at 103. Bonds are due on July 31,2030. Each $1,000 bond was issued with 20 detachable stock warrants entitling the bondholder to purchase one share of common stock (par value $15) for $40. On the date of issue, the fair value of the stock was $35 per share and the fair value of the warrants was $2. If Peytons bonds sell at 96 without the warrant, how much should Peyton record as paid-in capital from the warrants?

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