Use the following information for questions 64 and 65.

On May 1, 2016, Payne Co. issued $300,000 of 7% bonds at 103, which are due on April 30, 2026. Twenty detachable share warrants entitling the holder to purchase for $40 one share of Paynes ordinary shares, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2016, the fair value of Paynes shares was $35 per share and of the warrants was $2.

64. On May 1, 2016, Payne should credit Share Premium Share Warrants for a. $9,000. b. $12,000. c. $21,000. d. $12,360.

65. On May 1, 2016, Payne should record bonds at payable a. discount of $296,640. b. discount of $288,000. c. discount of $300,000. d. premium of $309,000.