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QUESTION 18 On May 1, 2021, Philip Co. issued $2,500,000 of 7% bonds at 103, which are due on April 30, 2031. Twenty detachable stock

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QUESTION 18 On May 1, 2021, Philip Co. issued $2,500,000 of 7% bonds at 103, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Philip's 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 Philip's common stock was $35 per share and of the warrants was $2. On May 1, 2021, Philip should record the bonds with a O discount of $100,000 discount of $25,000 discount of $28,000. premium of $75,000

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