What amount should oriole record on march

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Problem 1: On March 1, 2021, Oriole Company issued $2030000 of 8% nonconvertible bonds at 104, which are due on February 28, 2041. In addition, each $1000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Oriole common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2021, the fair value of Oriole's common stock was $40 per share and the fair value of the warrants was $2. What amount should Oriolerecord on March 1, 2021 as paid-in capital from stock warrants?

option 1: $101500
option 2: $75160
option 3: $86760
option 4: $105560

Reference no: EM132841214

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