Determine the paid-in capital from stock warrants


Response to the following problem:

On March 1, 2014, Ruiz Corporation issued $1,500,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2034. 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, 2014, the fair value of Ruiz'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, 2014 as paid-in capital from stock warrants?

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Financial Accounting: Determine the paid-in capital from stock warrants
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