Linus Corp. issues $500,000 of 6%, 5-year bonds with nondetachable stock warrants on January 1, 2020. Each $1,000 bond carries 5 warrants. Each warrant entitles the holder to purchase one share of $1 par common stock for $12. Assume the bond issue sells for 102. Management estimates that the bonds would sell for $500,000 if the warrants were not attached.

Upon issuance, Linus Corp. would record a credit to Paid-in CapitalStock Warrants for the following amount:

Group of answer choices

A) $-0-

B) $2,000

C) $5,000

D) $10,000