Laser Corp. issues $500,000 of 6%,5-year bonds with nondetachable stock warrants on January 1,2020. Each...

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Accounting

Laser Corp. issues $500,000 of 6%,5-year bonds with nondetachable stock warrants on January 1,2020. Each $1,000 bond carries 5 warrants. Each warrant entitles the holder to purchase one share of $1 par common stock for $12. Assume the bond issue sells for 102. Management estimates that the bonds would sell for $500,000 if the warrants were not attached. Upon issuance, Laser Corp. would record a credit to Paid-in CapitalStock Warrants for the following amount.for the following amount.
Select one:
a. $5,000
b. $10,000
c. $2,000
d. $0
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