52. 52 On March 1, 2025, Ruiz Corporation issued $2,000,000 of 8% nonconvertible bonds at 104. The bonds are due on February 28, 2041. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase one share of Ruiz's $25 par value common stock for $50. The bonds without the warrants would sell at 95. On March 1, 2025, the fair value of Ruiz's common stock was $40 per share and the fair value of the warrants was $2 per stock warrant. What amount should Ruiz record on March 1, 2025 as paid-in capital from stock warrants? a. $73,600 b. $85,200 c. $104,000 d. $100,000 Ans: C, LO: 2, Bloom: AP, Difficulty: Difficult, Min: 4, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement, Interpretation and Analysis, AICPA PC: None, IMA: Reporting and Control: Financial Recordkeeping, IFRS: None Solution: ($2,000,000 x .95)+(2,000 25 x $2) = $2,000,000; $2,000,000 x 1.04 = $2,080,000; $100,000 $2,080,000 = $104,000. $2,000,000