Accounting in Dilutive Securities and Earnings per share

On September 1, 2017, Swifty Company sold at 104 (plus accrued interest) 3,600 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $14 per share. Shortly after issuance, the warrants were quoted on the market for $2 each. No fair value can be determined for the Swifty Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $34,100 were incurred.