On July $1,2020,$ Salem Corporation issued $$2,000,000$ of $7\%$ bonds due in $10$ years. The bonds pay cash interest semiannually. Each $$1,000$ bond includes a detachable stock purchase warrant. Each warrant gives the bondholder the right to purchase, for $$30,$ one share of $$1$ par value common stock at any time during the next $10$ years. The bonds were sold at $101.$ The value of the stock purchase rights at the time of issuance was $$100,000.$ The bonds would sell without warrants at $$1,940,000.$

The detachable stock warrants should be recorded at

$$2,000.$

$$100,000.$

$$99,020.$

$$60,000.$