31. On May 1, 2021, Bonita Industries issued $4000000 of 7% bonds at 103, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Bonitas common stock, $15 par value, were attached to each $1000 bond. The bonds without the warrants would sell at 96. On May 1, 2021, the fair value of Bonitas common stock was $35 per share and of the warrants was $2. On May 1, 2021, Bonita should record the bonds with a

discount of $160000.

discount of $40000.

discount of $44800.

premium of $120000.