Business, 25.03.2020 02:14, faithyholcomb

On March 1, 2019, Wargo Corporation issued $500,000 of 7% nonconvertible bonds at 104, which are due on February 28, 2027. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitles the bondholder to purchase for $50 one share of Wargo common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2019, the fair market value of Wargo's common stock was $43 per share and the fair market value of each warrants was $6.00. What amount should Wargo record on March 1, 2019 as paid-in capital from stock warrants using the proportionate method?

a. $55,200
b. $63,900
c. $78,000
d. $75,000

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On March 1, 2019, Wargo Corporation issued $500,000 of 7% nonconvertible bonds at 104, which are due...