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How much is the amount credited to share premium

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Question - On July 1,2021, Devera Corporation issued P5 million of its 10%, 7-year bonds with one detachable warrant attached to each P1,000 bond. Each warrant provides for the right to purchase 20 shares of P15 par value ordinary for P20 each. The market value of the ordinary share was P25 each at July 1, 2021. At that time, the bonds without the warrants are selling at 97. The compound financial instrument was sold at 104. Assuming that all warrants are exercised and recorded in the accounts, how much is the amount credited to share premium?

a. P850,000

b. P530,000

c. P580,000

d. P350,000

Reference no: EM133085401

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