What bramble should record the bonds with a

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On May 1, 2021, Bramble Corp. issued $1480000 of 8% bonds at 102, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Bramble's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2021, the fair value of Bramble's common stock was $35 per share and of the warrants was $2.

Problem 1: On May 1, 2021, Bramble should record the bonds with a

Option 1: premium of $44400.
Option 2: discount of $30784.
Option 3: discount of $59200.
Option 4: discount of $14800.

Reference no: EM132844113

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