CUOCES aldon Problem 9-Warrants and Stock Options [25 minutes] 11 marks Part-Spruce Springclean issued 95,000 preferred shares and received proceeds of $6,000,000. These shares have a par value of $48 per share and pay cumulative dividends of 6%. Buyers of the preferred shares also received a detachable warrant with each share purchased. Each warrant gives the holder the right to buy one common share at $35 per share within 10 years. The underwriter estimated that the market value of the preferred shares alone, excluding the conversion rights, is approximately $64 per share. Shortly after the issuance of the preferred shares, the detachable warrants traded at $8 each. Prepare the necessary journal entry for the issuance of these shares and warrants under IFRS (8 marks). Debit Credit Part II - Fidler on the Tooth, a local dental practice, issued 110,000 stock options to its employees. The company granted the stock options when the share price was $40. These options have no vesting conditions. By year-end, the share price had increased to $42. Fidler on the Tooth's management estimates the value of these options at the grant date to be $1.60 each. Record the necessary journal entry on the issuance of the stock options (3 marks). DR. CR. Debit Credit