On May 1, 2014, Marly Co. issued $1,500,000 of 7% bonds at 103, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marlys common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2014, the fair value of Marlys common stock was $35 per share and of the warrants was $2.

Required: On May 1, 2014, Marly should record the bonds with a

Please show steps and calculations. Thank you.