Stock Warrants BE16-4: Margolf Corp. issued 2,000, $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market value of $40. Use the proportional method to record the issuance of the bonds and warrants Bondsu0An109 1Pro Number Total Percent 2,000 x S 1,000 x 0.98 $ 40 1,960,000 2,000 x 80,000 Total Fair Market Value2,040,000 4% 100% Warrants Allocation: Bonds Warrants Issue price Allocation % Total 2,020,000 96% 2,020,000 Bond face value 2,000,000 1,940,784 59,216 Allocated FMV Discount 4% S1,940,784 79,216 16-20 LO 3