On May 1, 2020, Payne Co. issued $1,500,000 of 7% bonds at 99, which are due on April 30, 2040. One detachable stock warrant entitling the holder to purchase 10 shares of Payne's common stock, $15 par value, was attached to each of the $1,000 bonds (1,500 bonds). On May 1, 2020, the fair value of each warrant was $40. In the entry to record the issuance of the bonds, Payne Co. should debit Discount on Bonds Payable for:

Multiple Choice

• $15,000

• $60,000

• $75,000

• $45,000