On March 1,2016,E Corp

On March 1,2016,E Corp.issued $1,000,000 of 10% nonconvertible bonds at 103,due on February 28,2026.Each $1,000 bond was issued with 30 detachable stock warrants,each of which entitled the holder to purchase,for $50,one share of Evan's $25 par common stock.On March 1,2016,the market price of each warrant was $4.By what amount should the bond issue proceeds increase shareholders' equity?

A) $ 0.
B) $ 30,000.
C) $ 90,000.
D) $120,000.

Correct Answer:

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