What amount should ruiz record on march

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Question 1: On March 1, 2017, Yang Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2037. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2017, the fair value of Yang's common stock was $40 per share and the fair value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants?

Option a. $36,800

Option b. $42,600

Option c. $52,000

Option d. $50,000

Reference no: EM132508608

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