Barker Industries Issued 2,000 $1,000 Bonds at 103

Barker Industries issued 2,000 $1,000 bonds at 103. Each bond contains 20 detachable stock warrants that allow the bondholder to purchase a share of Barker's common stock for $50. Immediately after the issue, the warrants were selling for $4 each and the bonds without the warrants were selling for $986. How much will be credited to Additional Paid-in Capital-Stock Warrants? (Round intermediate calculations to four decimal places and your final answer to the nearest dollar.) Use the proportional method.

A) $0
B) $60,000
C) $154,597
D) $160,000

Correct Answer:

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