On May $1,2025,$ Carla Vista Co$.$ issued $$3000000$ of $6\%$ bonds at $103.$ The bonds are due on April $30,2031.$ Twenty

detachable stock warrants entitling the holder to purchase for $$40$ one share of Carla Vista's $$15$ par value common

stock were attached to each $$1000$ bond. The bonds without the warrants would sell at $96.$ On May $1,2025,$ the fair

value of Carla Vista's common stock was $$35$ per share and of the warrants was $$2.$

On May $1,2025,$ Carla Vista will record a

discount of $$120000.$

discount of $$30000.$

premium of $$90000.$

discount of $$33600.$

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