On May 1, 2021, Vaughn Manufacturing issued $1630000 of 8% bonds at 102, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Vaughns common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2021, the fair value of Vaughns common stock was $35 per share and of the warrants was $2. On May 1, 2021, Vaughn should record the bonds with a