On April 1, 2021, Austere Corporation issued $350,000 of 10% bonds at 107. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?

Multiple Choice

• $271,000.

• $0.

• $346,500.

• $471,800.