19) On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 108 due on February 28, 2031. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $2, one share of Evan's $1 par common stock. On March 1, 2021, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity?

1. 30,000

2. 60,000

3. 80,000

4. 120,000

20) Crawford Inc. has bonds outstanding during a year in which the general (risk-free) rate of interest has increased. Crawford elected the fair value option for the bonds upon issuance. What will the company report for the bonds in its income statement for the year?

1. Interest expense and a loss

2. Interest expense and a gain

3. A gain and no interest expense

4. interest expense and no gain or loss