On March 1, 2025, Cullumber Corporation issued $1920000 of 8% nonconvertible bonds at 104. The bonds are due on February 28, 2041. In addition, each $1000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase. one share of Cullumber's $25 par value common stock for $50. The bonds without the warrants would sell at 95. On March 1, 2025, the fair value of Cullumber's common stock was $40 per share and the fair value of the warrants was $2 per stock warrant. What amount should Cullumber record on March 1, 2025 as paid-in capital from stock warrants? O $81040 O $70240 O $99840 Ⓒ$96000

On March 1, 2025, Cullumber Corporation issued $1920000 of 8% nonconvertible bonds at 104. The bonds are due on February 28, 2041. In addition, each $1000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase. one share of Cullumber's $25 par value common stock for $50. The bonds without the warrants would sell at 95. On March 1, 2025, the fair value of Cullumber's common stock was $40 per share and the fair value of the warrants was $2 per stock warrant. What amount should Cullumber record on March 1, 2025 as paid-in capital from stock warrants? O $81040 O $70240 O $99840 Ⓒ$96000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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