54. 44 On May 1, 2025, Payne Co. issued $1,500,000 of 7% bonds at 103. The bonds are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2025, the fair value of Payne's common stock was $35 per share and of the warrants was $2. On May 1, 2025, Payne should credit Paid-in Capital from Stock Warrants for a. $57,600. b. $60,000. c. $61,800. d. $105,000. Ans: C, LO: 2, Bloom: AP, Difficulty: Moderate, 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: ($1,500,000 x .96)+(30,000 x $2) = $1,500,000; $1,500,000 x 1.03 $1,545,000; $60,000 x $1,545,000 = $61,800. $1,500,000