On May 1, 2017, Durban Ltd. issued $500,000, 10 year, 7% bonds at 103. Twenty detachable warrants were attached to each $1,000 bond, which entitled the holder to purchase one of Durbans no par value common shares for $40. At this time, similar bonds without warrants were selling at 96. It was determined that the fair value of Durbans common shares was $35, but the value of the warrants was not determinable. Durban is a private corporation that follows ASPE, but does not use the residual method. On May 1, 2017, Durban should credit Bonds Payable for

A) $500,000.

B) $515,000.

C) $480,000.

D) cannot be determined from the information given

* The answer is not 500,000 (A) *

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