1.On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,000. Each P1,000 bonds had two detachable warrants eligible for the purchase of one share of Luzon's P100 par ordinary share for P120. Without the warrants the bonds are selling at P2,078,000. What amount should Luzon Company recognize as value of the share warrants?

2.Berry Co. issued P800,000 of 12% face value bonds for P851,706. The bonds which were dated and issued on April 1, 2017, are due March 31, 2021, and pay interest semiannually on September 30 and March 31. The company sold the bonds to yield 10%. How much is carrying value of the bonds payable as of December 31, 2017?