5. On December 31, 2019, Moses Company issued P5,000,000 face value, 5-year bonds at 109. Each P1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of P5 par value common at P25. Immediately after issuance, the market value of each warrant was P5. The stated interest rate on the bonds is 11% payable annually every December 31. However, the prevailing market rate of interest for similar bonds without warrants is 12%. The present value of 1 at 12% for 5 periods is 0.57 and the present value of an ordinary annuity of 1 at 12% for 5 periods is 3.60. On December 31, 2019, what amount should Moses record as discount or premium on bonds payable? a. 170,000 discount b. 450,000 premium c. 450,000 discount d. 800.000 premium