On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on June 30, 2041. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Duck common stock, par value $25. The bonds without the warrants would normally sell at 95. On May 1, 2021, the fair value of Duck's common stock was $40 per share and the fair value of the warrants was $2.00. What amount should Duck record on May 1, 2021 as paid-in capital from stock warrants? O $100,000 O $73,600 O $104,000 $85,200

On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on June 30, 2041. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Duck common stock, par value $25. The bonds without the warrants would normally sell at 95. On May 1, 2021, the fair value of Duck's common stock was $40 per share and the fair value of the warrants was $2.00. What amount should Duck record on May 1, 2021 as paid-in capital from stock warrants? O $100,000 O $73,600 O $104,000 $85,200

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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