28, On December 31, 20X3, Moss Company issued $1,000,000 of 11% bonds at 109. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of $5 par common stock for $25. Immediately after issuance, the market value of each warrant was $4. On December 31, 20X3, what amount should Moss record as discount or premium on issuance of bonds?

Multiple Choice

$90,000 premium.

$40,000 premium.

$200,000 discount.

$110,000 discount.