On May 1, 2018, Marigold Corp. issued $1200000 of 8% bonds at 102, which are due on April 30, 2028. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marigolds common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2018, the fair value of Marigolds common stock was $35 per share and of the warrants was $2.

On May 1, 2018, Marigold should record the bonds with a