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B. Hall & Company issues $10,000,000 in 5% bonds with detachable warrants of 10 warrants for each $1,000 bond. The bonds are issued at 101.
B. Hall & Company issues $10,000,000 in 5% bonds with detachable warrants of 10 warrants for each $1,000 bond. The bonds are issued at 101. Record the issuance under the following assumptions: Assume that the fair value of the warrants are $5.00 or $500,000 and the bonds would have been issued at 98.
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