During 2018, QQ Corporation issued at 95, 1,000 of its 8%, P5,000 bonds due in ten years. One detachable stock purchase warrants entitling the holder to buy 20 shares of QQ’s ordinary shares was attached to each bond. Shortly after issuance, the bonds are selling at 10% ex-warrant, and each warrant was quoted at P60.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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During 2018, QQ Corporation issued at 95, 1,000 of its 8%, P5,000 bonds due in ten years. One detachable stock purchase warrants entitling the holder to buy 20 shares of QQ’s ordinary shares was attached to each bond. Shortly after issuance, the bonds are selling at 10% ex-warrant, and each warrant was quoted at P60.

What is the fair value of the bond

What amount, if any, of the proceeds from the bond issuance should be recorded as part of QQ’s shareholders’ equity? 

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