During 2014, Gordon Company Issued at 104 Four Hundred, $1,000

During 2014, Gordon Company issued at 104 four hundred, $1,000 bonds due in ten years. One detachable stock warrant entitling the holder to purchase 15 shares of Gordon's common stock was attached to each bond. At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at 96. The market value of each detachable warrant was quoted at $40. What amount, if any, of the proceeds from the issuance should be accounted for as part of Gordon's stockholders' equity?

A) $0
B) $16,000
C) $16,640
D) $15,808

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free