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What was the gain on the sale of the stock warrants

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Question - On February 24, BMC Company purchased 4,000 shares of Winn Corp.s newly issued 6 percent cumulative $75 par preferred stock for $304,000. Each share carried one detachable stock warrant entitling the holder to acquire, at $10, one share of Winn no-par common stock. On February 25, the market price of the preferred stock ex-warrants was $72 per share, and the market price of the stock warrants was $8 per warrant. On December 29, BMC sold all the stock warrants for $41,000. What was the gain on the sale of the stock warrants?

A. $9,374

B. $10,600

C. $19,766

D. $21,234

Reference no: EM133097383

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