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McCarthy Inc. issued 1,000, $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the
McCarthy Inc. issued 1,000, $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98. The market price of the warrants, without the bonds, cannot be determined. The amount of the proceeds from the issuance that should be accounted for as part of stockholders' equity would be a. $30,000 b. $195,700 c. $1,000,000 d. $1,010,000
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