What amount of the proceeds from the bond issuance

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Question - During 2008, Royal Corporation issued at 95, one thousand of its 8%, P5,000 bonds due in ten years. One detachable stock purchase warrants entitling the holder to buy 20 shares of Royal's ordinary shares was attached to each bond. Shortly after issuance, the bonds are selling at 10% ex-warrant, and each warrant was quoted at P60. What amount, if any, of the proceeds from the bond issuance should be recorded as part of Royal's shareholder's equity?

Reference no: EM132929083

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