What amount should ruiz record on march

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Problem 1: On March 1, 2021, Riley Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2041. 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, 2021, the fair value of Ruiz's common stock was $40 per share and the fair value of the detachable warrants was $2.00 each. What amount should Ruiz record on March 1, 2021 as paid-in capital from stock warrants?

Option 1: $104,000

Option 2: $73,600

Option 3: $85,200

Option 4: $100,000

Reference no: EM132820218

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