On August 1, 2021, Missouri Corporation issued $10 million of 8% nonconvertible bonds

at 104. The bonds mature in 20 years. Each $1,000 bond was issued with 20 detachable

stock warrants. Each warrant entitl

es the holder to purchase, for $50, one share of

Missouri Corporation's $1 par common stock. On August 1, 2021, the market value per

share for Missouri's stock was $46 and the market value of each warrant was $6. The

market price of the bonds cannot be c

learly determined. Total proceeds allocated to the

stock warrants are:

A)

$1,200,000

B)

$200,000

C)

$400,000

D)

$460,000