On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 103, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne’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, 2014, the fair value of Payne’s common stock was $35 per share and of the warrants was $2.
On May 1, 2014, Payne should credit Paid-in Capital from Stock Warrants for?
$34,560
$36,000
$37,080
$63,000
On May 1, 2014, Payne should record the bonds with a?
Discount of $36,000
Discount of $10,080
Discount of $9,000