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  1. business
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  3. 2. ray corp. issued bonds with a face amount of $2

2. Ray Corp. issued bonds with a face amount of $200,000. Each $1,000 bond contained...

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Accounting

2. Ray Corp. issued bonds with a face amount of $200,000. Each $1,000 bond contained

detachable stock warrants for 100 shares of Ray's common stock. Total proceeds from the

issue amounted to $240,000. The market value of each warrant was $2, and the market value

of the bonds without the warrants was $196,000. The bonds were issued at a discount of

(rounding the allocation percentage to two decimal places):

a. $0

b. $800

c. $4,000

d. $33,898

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