JMR Ltd. issued $100,000 of 8%, 8 year, non- convertible bond with detachable stock purchase warrants. KER Corp. purchased the entire issue. Each $1,000 bond carries 10 warrants. Each warrant entitles KER to purchase one common share for $20. The bond issue sells for 104 exclusive of accrued interest. Shortly after issuance, the warrants trade for $5 each and the bonds were quoted at 103 ex-warrants. The allocation of the proceeds to bonds using the proportional method was: O 107,000 108,000 99,185 100,000