A) On June 30, 2021, when Sunland Company's stock was selling at $66 per share, its capital accounts were as follows:

Capital stock (par value $50; 63000 shares issued)	$3150000
Premium on capital stock	630000
Retained earnings	4310000

If a 100% stock dividend were declared and distributed, capital stock would be

$3780000.

$3150000.

$8316000.

$6300000.

B) On December 1, 2021, Waterway Industries issued 850 of its 7%, $1,000 bonds at 102. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Waterway's common stock. On December 1, 2021, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be

$850000.

$814980.

$823650.

$867000.