1. Treehouse Inc. issued at par 1,000 of its 4%, 5-year bonds, each with a face value of $1,000. Each bond carried a detachable warrant for one share of Treehouses common stock at a specified option price of $48 per share. Immediately after issuance, the market value of the bonds without the warrants was $906,400 and the market value of the warrants was $123,600. What amount should Treehouse record as Paid-in capital from warrants?

   		$48,000
   		$120,000
   		$123,600
   		$906,400
   		$1,000,000