On May 1, 2025, Sunland Co. issued $1590000 of 8% bonds at 102. The bonds are due on April 30, 2031. Twenty detachable stockwarrants entitling the holder to purchase for $40 one share of Sunland's common stock, $15 par value, were attached to each $1000bond. The bonds without the warrants would sell at 96. On May 1, 2025, the fair value of Sunland's common stock was $35 per shareand of the warrants was $2.On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants forO $60672.O $63600.O $64872.O $95400.

Bonds are fixed-income securities that reflect investor loans to borrowers (typically corporate or…

Answered: On May 1, 2025, Sunland should credit…

Business

Accounting

On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants for O $60672. O $63600. O $64872. O $95400.

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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Question

100%

On May 1, 2025, Sunland Co. issued $1590000 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 Sunland'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 Sunland's common stock was $35 per share
and of the warrants was $2.
On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants for
O $60672.
O $63600.
O $64872.
O $95400.

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