Find what amount should be credited to common shares

Reference no: EM132724370

Problem 1: On January 1, 20X5, Aria Inc. issued bonds for $960,000. The bonds include 20,000 warrants giving the shareholder the right to purchase one common share for $14. The value of the bonds without the warrants attached would be $880,000. On September 26, 20X6, a total of 8,000 warrants were exercised. The fair market value of the warrants at this date was $5. What amount should be credited to common shares on September 26, 20X6?

Reference no: EM132724370

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