Litke Corporation issued at a discount of $5,000 a $100,000 bond issue convertible into 2,000 shares of common stock (par value $5). At the time of the conversion, the unamortized discount is $3,000, the market value of the bonds is $110,000, and the stock is quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds? a. $58,000 b. $87,000 c. $77,000 d. $80,000 coooo What effect does the issuance of a 2-for-1 stock split have on each of the following? Par Value per Share Retained Earnings No effect No effect Increase No effect Decrease No effect Decrease Decrease Vernon Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $32). The price paid for 800, $1,000 bonds with the warrants attached was $820,000. The market price of the Vernon bonds without the warrants was $720,000, and the market price of the warrants without the bonds was $80,000. What amount should be allocated to the warrants? a. $80,000 b. $82,000 c. $96,000 d. $100,000