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Neil Corporation issued 5,000 of its $1,000 par value bonds for $1,030, providing cash proceeds of $5,150,000. Each bond contains 15 detachable stock warrants that
Neil Corporation issued 5,000 of its $1,000 par value bonds for $1,030, providing cash proceeds of $5,150,000. Each bond contains 15 detachable stock warrants that allow the bondholder to purchase a share of Barker's common stock for $50. Immediately after the issue, the bonds without the warrants were selling for $1,008. The stock warrants had no readily determinable value. how much will be credited to Paid-in Capital - Stock Warrant? The answer is $110,000...I need to see the steps as to how to get to the $110,000.
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