On March 1, 2018, E Corp. issued $1,200,000 of 12% nonconvertible bonds at 107, due on February 28, 2028. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the holder to purchase, for $60, one share of Evan's $15 par common stock. On March 1, 2018, the market price of each warrant was $5. By what amount should the bond issue proceeds increase shareholders' equity?

Multiple Choice

• $120,000.

• $174,000.

• $84,000.

• $0.