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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
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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
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