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On December 1 , 2 0 2 5 , Sandhill Company issued 8 1 0 of its 9 % , $ 1 , 0 0

On December 1,2025, Sandhill Company issued 810 of its 9%,$1,000 bonds at 102. Each bond included one
detachable stock warrant entitling the holder to purchase 10 shares of Sandhill's common stock. On December 1,
2025, the market value of the bonds without the stock warrants was 95 and the market value of each stock
warrant was $50. The initial carrying value of the bonds payable at the date of issuance would be
$810000.
$826200.
$784890.
$776628.
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