On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 103, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2014, the fair value of Payne's common stock was $35 per share and of the warrants was $2.

On May 1, 2014, Payne should credit Paid-in Capital from Stock Warrants for?

Answer rating: 100% (QA)

Solution 18 Bond issuance price 900000 x 102 918000 Fair ... View the full answer