Chase Corp sold 200, $1,000, 6.5 percent bonds at 105 on March 1, 2006. Each bond has 10 warrants attached, and each warrant allows its holder to purchase one share of $1 par value common stock at $10 per share. At the time of sale, the bonds without the stock warrants would have sold for 102, and the stock warrants for $10. The stock warrants will expire on December 31, 2008. Select the total value that Chase Corp should use to record the detachable warrants issued on March 1, 2006.
a) $50,000
b) $20,000
c) $18,750
d) $0