1A.

Ravenclaw Incorporated issued stock warrants as compensation expense that were later exercised. Each warrant allows the holder to purchase one share of common stock at a specific price. Ravenclaw Incorporated reports the following information:

Item	Amount
Number of warrants issued	3,000
Fair value of each warrant at time of issuance	$6
Warrant exercise (strike) price	$23
Par value of common stock	$1
Market value of a common share when warrants are exercised	$38

When the warrants are exercised, how much should Ravenclaw Incorporated credit to Paid-in Capital in Excess of Par Common Stock?

$84,000

$15,000

$66,000

$87,000