On May 1, 2016, Marly Co. issued $500,000 of 7% bonds at 103, which are due on April 30, 2026. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marlys ordinary shares $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2016, the fair value of Marlys shares was $35 per share and of the warrants was $2.

67. On May 1, 2016, Marly should record bonds payable at

a. $515,000. b. $500,000. c. $480,000. d. $494,400.

68. On May 1, 2016, Marly should credit Share PremiumShare Warrants for

a. $20,600 b. $35,000 c. $20,000 d. $15,000