By what amount should the bond issue proceeds increase


On March 1, 2009, E Corp. issued $1,300,000 of 9% nonconvertible bonds at 110, due on February 28, 2019. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitled the holder to purchase, for $70, one share of Evan's $35 par common stock. On March 1, 2009, the market price of each warrant was $3. By what amount should the bond issue proceeds increase shareholders' equity?

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Accounting Basics: By what amount should the bond issue proceeds increase
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