On April 1, 2016, Austere Corporation issued $370,000 of 9% bonds at 106. Each $1,000 bond was sold with 50 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $14 per share and the market value of each warrant was $4. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?

A. $0.

B. $443,500.

C. $318,200.

D. $242,700.