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KKK Co. issued 1,000 bonds, $1,000 par value due in 15 years at 104. Each bond has one detachable stock warrant entitling the holder to
KKK Co. issued 1,000 bonds, $1,000 par value due in 15 years at 104. Each bond has one detachable stock warrant entitling the holder to purchase 10 shares of KKK's common stock. At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at 81. The market value of each detachable warrant was quoted at $90. What amount of the proceeds from the issuance should be allocated to the bonds? A. $90,000. B. $64,000 C. None of these answers. D. $936,000. E. $104,000.
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